Company Registration Number: SC286107
FOR THE YEAR ENDED 30 NOVEMBER 2025
COLORADO GROUP LIMITED
COMPANY INFORMATION
COLORADO GROUP LIMITED
CONTENTS
COLORADO GROUP LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2025
The Directors present their Strategic Report for Colorado Group Limited for the year ended 30 November 2025.
The Group continued its principal activities during the year which is that of construction, industrial engineering, and refurbishment project work, together with property development.
The activity of Colorado Group Limited continues to be that of a holding company.
Colorado Group’s largest subsidiary, Colorado Construction and Engineering Ltd, has a strong current and future workload. The Company continues to maintain a strong financial position, underpinned by a healthy cash balance, a secured forward order book and a consistent track record of profitable trading.
The business remains wholly focused on delivering high-quality projects safely, professionally and collaboratively. This commitment has enabled the Company to build long-standing relationships with many of its core clients, several of which extend over more than twenty years. Approximately 85% of annual turnover continues to be generated from repeat business, with the balance secured through referrals, negotiated contracts and carefully selected competitive tenders.
Colorado Construction has developed recognised expertise in the design and construction of distilleries, maturation warehouses and associated whisky production facilities. Alongside this core capability, the Company has successfully delivered visitor centres, food and drink production facilities, restoration and refurbishment of Listed Buildings, and the construction and alteration of individual high-value private homes. The business also continues to expand its planned and reactive maintenance services together with its specialist small works capability.
The activity of Colorado Group Limited continues to be that of a holding company.
Colorado Group’s largest subsidiary, Colorado Construction and Engineering Ltd, has a strong current and future workload. The Company continues to maintain a strong financial position, underpinned by a healthy cash balance, a secured forward order book and a consistent track record of profitable trading.
The business remains wholly focused on delivering high-quality projects safely, professionally and collaboratively. This commitment has enabled the Company to build long-standing relationships with many of its core clients, several of which extend over more than twenty years. Approximately 85% of annual turnover continues to be generated from repeat business, with the balance secured through referrals, negotiated contracts and carefully selected competitive tenders.
Colorado Construction has developed recognised expertise in the design and construction of distilleries, maturation warehouses and associated whisky production facilities. Alongside this core capability, the Company has successfully delivered visitor centres, food and drink production facilities, restoration and refurbishment of Listed Buildings, and the construction and alteration of individual high-value private homes. The business also continues to expand its planned and reactive maintenance services together with its specialist small works capability.
Ownership and Strategic Position
As reported in the previous Strategic Report, Colorado Group Limited utilised retained reserves during late 2024 to acquire the majority shareholder's interest in the business.
During 2026, all remaining lending was repaid, leaving the business debt free with a strong cash position. Colorado Group Limited is now wholly owned by its operational directors, aligning ownership directly with those responsible for the day-to-day management and long-term development of the Company.
The Directors believe this represents an important strategic milestone, providing greater financial flexibility, strengthening the Company's balance sheet and allowing management to focus entirely on delivering long-term value for clients, employees and stakeholders.
As reported in the previous Strategic Report, Colorado Group Limited utilised retained reserves during late 2024 to acquire the majority shareholder's interest in the business.
During 2026, all remaining lending was repaid, leaving the business debt free with a strong cash position. Colorado Group Limited is now wholly owned by its operational directors, aligning ownership directly with those responsible for the day-to-day management and long-term development of the Company.
The Directors believe this represents an important strategic milestone, providing greater financial flexibility, strengthening the Company's balance sheet and allowing management to focus entirely on delivering long-term value for clients, employees and stakeholders.
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COLORADO GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2025
Economic Environment
Political and economic uncertainty has continued both within the United Kingdom and internationally throughout the period. Inflationary pressures, labour availability and wider geopolitical events have continued to present challenges across the construction sector.
Despite these headwinds, the Directors consider the Company's principal markets to remain fundamentally strong. Colorado Construction's specialist expertise is closely aligned with the Scotch whisky industry, which continues to represent one of Scotland's most productive and internationally recognised sectors.
Although investment within the whisky sector moderated during 2025, the Directors remain confident that long-term demand remains positive. Recent developments, including improved international trading conditions and expanding export opportunities, are expected to support renewed investment across the sector during 2026 and beyond.
The Directors continue to monitor wider economic developments carefully and remain satisfied that the Company is well positioned to respond to changing market conditions.
Forward Workload and Business Development
The Company secured forward workload remains strong, with significant projects already committed across its principal areas of expertise.
Colorado Construction continues to enjoy a leading position within the construction of distilleries, maturation warehouses and associated whisky production facilities, while also maintaining opportunities across the wider food and beverage manufacturing sector.
The Company continues to undertake the construction of individual high-value private homes together with the restoration and refurbishment of Listed Buildings, both of which remain important strategic markets offering attractive long-term opportunities.
Developing lasting relationships with clients, consultants and professional advisers remains central to the Company's strategy. By consistently understanding client objectives and delivering projects to the highest standards of quality, safety and professionalism, Colorado Construction continues to strengthen its reputation as a trusted construction partner. This approach has resulted in a substantial level of repeat business and provides confidence in the Company's future workload.
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COLORADO GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2025
People and Operational Capability
The Company's continued success is underpinned by an experienced management, commercial and technical team together with a highly skilled directly employed workforce.
Colorado Construction employs specialist construction managers, engineers and site supervisors supported by quantity surveyors, finance professionals and an experienced SHEQ team. The business also maintains directly employed teams delivering general building works, maintenance, specialist painting, restoration and labour services.
In addition, the Company possesses in-house capability to undertake groundworks, drainage, infrastructure works, structural steel installation and cladding, enabling greater control over quality, programme and project delivery.
The Directors remain committed to investing in employees, promoting a collaborative culture and maintaining high levels of staff retention, recognising that the Company's people remain its greatest asset.
Geographic Reach
Operating from its headquarters in Scotland's Central Belt, Colorado Construction continues to deliver projects throughout Scotland in support of its principal client base.
While the Company's primary operational focus remains Central Scotland, projects continue to be successfully delivered across the Highlands, Islands and other remote locations where specialist expertise is required.
Health, Safety and Environmental Performance
Health, safety and environmental performance remain fundamental to every aspect of the Company's operations.
Colorado Construction maintains a dedicated in-house Safety, Health, Environment and Quality (SHEQ) team supported by established management systems designed to promote continual improvement and ensure compliance with all relevant legislation and industry best practice.
The Company continues to hold a number of independently assessed accreditations, including SafeContractor, CHAS, Constructionline and the RoSPA Silver Award, providing assurance to clients that robust management systems and high operational standards remain embedded throughout the business.
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COLORADO GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2025
The Company has maintained a strong record of profitability throughout its history, with only one exceptional loss arising in 2018 on a single project.
The group continued to deliver a strong financial performance during the year, generating a gross turnover of approximately £22.5 million and achieving a net profit before taxation of approximately £417,000.
The Directors remain satisfied that the Company's strategy of prioritising sustainable, profitable work over turnover growth continues to deliver positive results.
The principal financial performance indicators monitored by the Directors remain turnover, gross margin, profitability, cash generation and liquidity, all of which continue to demonstrate the underlying strength of the business.
The group continued to deliver a strong financial performance during the year, generating a gross turnover of approximately £22.5 million and achieving a net profit before taxation of approximately £417,000.
The Directors remain satisfied that the Company's strategy of prioritising sustainable, profitable work over turnover growth continues to deliver positive results.
The principal financial performance indicators monitored by the Directors remain turnover, gross margin, profitability, cash generation and liquidity, all of which continue to demonstrate the underlying strength of the business.
The principal risks facing the Company continue to include supply chain resilience, inflationary cost pressures, labour availability and wider economic uncertainty.
The Directors actively manage these risks through disciplined project selection, careful contract management, regular financial forecasting, strong cash management and the maintenance of long-established relationships with key suppliers, subcontractors and clients.
The ongoing geopolitical uncertainty associated with international conflict continues to present broader economic risks. Whilst the Directors do not currently anticipate any direct operational impact upon the Company, wider economic consequences continue to be monitored closely.
The Directors remain confident that Colorado Construction is well positioned to manage these challenges through its strong financial position, experienced management team, established customer relationships and carefully secured forward workload.
The Directors actively manage these risks through disciplined project selection, careful contract management, regular financial forecasting, strong cash management and the maintenance of long-established relationships with key suppliers, subcontractors and clients.
The ongoing geopolitical uncertainty associated with international conflict continues to present broader economic risks. Whilst the Directors do not currently anticipate any direct operational impact upon the Company, wider economic consequences continue to be monitored closely.
The Directors remain confident that Colorado Construction is well positioned to manage these challenges through its strong financial position, experienced management team, established customer relationships and carefully secured forward workload.
Colorado Group Limited enters the forthcoming financial year in a strong position.
The group benefits from a loyal client base, a substantial secured workload, a highly experienced workforce and an excellent reputation for delivering complex, high-quality construction projects across Scotland.
The Directors believe that continued investment in long-term client relationships, operational excellence and specialist expertise will enable the business to build upon its successful track record and continue generating sustainable, profitable growth.
The Board remains confident in the Company's future prospects and expects Colorado Construction to continue delivering successful outcomes for its clients while maintaining its strong financial performance in the years ahead.
The group benefits from a loyal client base, a substantial secured workload, a highly experienced workforce and an excellent reputation for delivering complex, high-quality construction projects across Scotland.
The Directors believe that continued investment in long-term client relationships, operational excellence and specialist expertise will enable the business to build upon its successful track record and continue generating sustainable, profitable growth.
The Board remains confident in the Company's future prospects and expects Colorado Construction to continue delivering successful outcomes for its clients while maintaining its strong financial performance in the years ahead.
This report was approved by the board and signed on its behalf.
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COLORADO GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2025
The Directors present their report and the financial statements for the year ended 30 November 2025.
The Directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the Directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments 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 Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £496,130 (2024 - loss £1,446,528).
The Directors have not recommended a dividend in the current or prior year.
The Directors who served during the year were:
Going into 2026 and 2027, the Company continues to secure major projects in its areas of expertise including distilleries, maturation warehouses and other drinks and food production facility construction projects. The Company continues to undertake the construction of individual high-value private homes together with the restoration and refurbishment of Listed Buildings, both of which remain important strategic markets offering attractive long-term opportunities. The board will continue to develop lasting relationships with clients, consultants and professional advisers. By consistently understanding client objectives and delivering projects to the highest standards of quality, safety and professionalism, Colorado Construction continues to strengthen its reputation as a trusted construction partner.
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COLORADO GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2025
The group's business review and principal activities, information regarding the group's key financial performance indicators and principal risks and uncertainties are disclosed within the Group Strategic Report.
There have been no significant events affecting the Group since the year end.
Under section 487(2) of the Companies Act 2006, Armstrong Watson Audit Limited will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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COLORADO GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF COLORADO GROUP LIMITED
We have audited the financial statements of Colorado Group Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 30 November 2025, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity, the Consolidated Statement of Cash Flows, the Consolidated Analysis of Net Debt and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their application 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).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
In auditing the financial statements, we have concluded that the Directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the Parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.
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COLORADO GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF COLORADO GROUP LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Directors are responsible for the other information contained within the Annual Report. 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. 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 course of 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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COLORADO GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF COLORADO GROUP LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group 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:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
∙the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and knowledge of the Company to identify or recognise non-compliance with applicable laws and regulations.
∙we identified the laws and regulations applicable to the company through discussions with directors and other management and review of appropriate industry knowledge. Key laws and regulations we identified during the audit were the UK Companies Act 2006 and tax legislation, UK employment legislation and UK health and safety legislation;
∙we assessed the extent of compliance with the laws and regulations identified above by making enquiries of management and
∙identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the Company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
∙making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual suspected and alleged fraud; and
∙considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
∙performed analytical procedures as a risk assessment tool to identify any unusual or unexpected relationships
∙tested journal entries recorded on the Company's finance system to identify unusual transactions that may indicate override of controls:
∙reviewed key judgements and estimates for any evidence of management bias.
∙reviewed the application of accounting policies with focus on those with heightened estimation uncertainty.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
∙agreeing financial statement disclosures to underlying supporting documentation and
∙enquiring of management to identify actual and potential litigation and claims.
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.
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COLORADO GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF COLORADO GROUP LIMITED (CONTINUED)
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants & Statutory Auditors
Glasgow
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COLORADO GROUP LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2025
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COLORADO GROUP LIMITED
REGISTERED NUMBER: SC286107
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 NOVEMBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 40 form part of these financial statements.
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COLORADO GROUP LIMITED
REGISTERED NUMBER: SC286107
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 30 NOVEMBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 40 form part of these financial statements.
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COLORADO GROUP LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2025
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COLORADO GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2025
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COLORADO GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2025
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COLORADO GROUP LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 NOVEMBER 2025
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COLORADO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2025
Colorado Group Limited is a private company limited by shares registered in Scotland. Registered number SC286107. The Company's registered office and principal place of business is Colorado House, 11 Caputhall Road, Deans Industrial Estate, Deans, Livingston, EH54 8AS.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The Company's functional and presentational currency is GBP and is rounded to the nearest £.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In the year to 30 November 2024, the directors took the opportunity to reassess intercompany lending and lending to related parties. Much of this lending between the parties was settled or written off or written down. This, along with the financial impact of completing the share buy-back and substantially settling the main investor’s loans, resulted in an overall negative net asset value for the group at the end of November 2024. Although the group still has an overall negative net asset value at the end of 30 November 2025, this has been significantly improved due to the strong profits in the year to 30 November 2025.
The directors are very confident of the status of the Group as a going concern and have forecast strong profits in Colorado Construction and Engineering Ltd for November 2026 and November 2027. With this, the directors fully expect to move swiftly back to a positive net asset position and look forward to the strong profitability and growth in this next phase of the business.
In making their going concern assessment the Directors have prepared financial forecasts which extend to 31 August 2027. These show that the business is expected to have sufficient cash reserves to meet its liabilities as they fall due for a period of at least one year from the date the financial statements are signed. Therefore, the Directors consider it appropriate to prepare the financial statements on a going concern basis.
The directors are very confident of the status of the Group as a going concern and have forecast strong profits in Colorado Construction and Engineering Ltd for November 2026 and November 2027. With this, the directors fully expect to move swiftly back to a positive net asset position and look forward to the strong profitability and growth in this next phase of the business.
In making their going concern assessment the Directors have prepared financial forecasts which extend to 31 August 2027. These show that the business is expected to have sufficient cash reserves to meet its liabilities as they fall due for a period of at least one year from the date the financial statements are signed. Therefore, the Directors consider it appropriate to prepare the financial statements on a going concern basis.
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COLORADO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2025
2.Accounting policies (continued)
Grants of a revenue nature are recognised in the Consolidated Statement of Comprehensive Income in the same period as the related expenditure.
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COLORADO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2025
2.Accounting policies (continued)
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COLORADO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2025
2.Accounting policies (continued)
At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Stocks, which comprise land and property, are valued at the lower of cost and net realisable value.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Consolidated Statement of Comprehensive Income.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Consolidated Statement of Comprehensive Income.
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COLORADO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2025
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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COLORADO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2025
2.Accounting policies (continued)
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Group's Statement of Financial Position when the Group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Basic financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.
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COLORADO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2025
2.Accounting policies (continued)
Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.
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COLORADO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2025
2.Accounting policies (continued)
Financial liabilities and equity are classified according to the substance of the financial instrument's contractual obligations, rather than the financial instrument's legal form.
Financial liabilities within the scope of IAS 39 are initially classified as financial liabilities at fair value through profit or loss, loans and borrowings, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.
The Group determines the classification of its financial liabilities at initial recognition. All financial liabilities are recognised initially at fair value and in the case of loans and borrowings, plus directly attributable transaction costs.
Subsequently, the measurement of financial liabilities depends on their classification as follows:
The Group determines the classification of its financial liabilities at initial recognition. All financial liabilities are recognised initially at fair value and in the case of loans and borrowings, plus directly attributable transaction costs.
Subsequently, the measurement of financial liabilities depends on their classification as follows:
After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method.
Gains and losses arising on the repurchase, settlement or otherwise cancellation of liabilities are recognised respectively in finance revenue and finance cost.
Where an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such as an exchange or modification, this is treated as a derecognition of the original liability, such that the difference in the respective carrying amounts together with any costs or fees incurred are recognised in profit or loss.
Where contractual obligations are performed gradually over time, the revenue is recognised as contract activity progresses to reflect the partial performance of these obligations.
The progress of the contract is determined through monthly site surveys attended by representatives of the company and the specific customer at which measurements are taken and agreed between the two parties.
The amount of revenue included reflects the accrual of the right to consideration as contract activity progresses by reference to the value of the work performed.
The progress of the contract is determined through monthly site surveys attended by representatives of the company and the specific customer at which measurements are taken and agreed between the two parties.
The amount of revenue included reflects the accrual of the right to consideration as contract activity progresses by reference to the value of the work performed.
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COLORADO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2025
required to make judgements, estimates and assumptions about the carrying amount of assets and
liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, 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.
Accruals & provisions
The calculation of accruals and provisions contains an inherent level of subjectivity. The Directors
consider that the current level of accruals and provisions represents the best estimate of the likely
exposure.
Valuation of construction projects
Key judgements are also made regarding the valuation of construction projects at the year end, which impacts revenue, where agreed third party valuations are performed in advance of this date. The Directors consider that internal valuations of the work performed in this period are accurate given the
experience of and knowledge of the quantity surveyors employed.
Valuation of stock
Management have also made key judgements regarding the future sales values of remaining development plots and costs to come in determining the carrying value of stocks.
Valuation of investments
During the reporting period, management assessed the value of the company's investment in its trading subsidiary. This assessment was based on a review of the subsidiary's financial performance, market conditions, and future growth prospects.
Page 26
COLORADO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2025
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COLORADO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2025
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COLORADO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2025
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COLORADO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2025
12.Taxation (continued)
There are no factors which may affect future tax charges.
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COLORADO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2025
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COLORADO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2025
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COLORADO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2025
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COLORADO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2025
Page 34
COLORADO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2025
Subsidiary undertakings (continued)
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COLORADO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2025
Page 36
COLORADO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2025
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COLORADO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2025
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Page 38
COLORADO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2025
Revaluation reserve
Capital redemption reserve
Profit and loss account
dividends paid.
The Group makes payments to a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £517,888 (2024 - £296,240). Contributions totalling £245,925 (2024 - £Nil) were payable to the fund at the reporting date and are included in creditors.
During the year, the Group advanced £13,000 to directors (2024: £60,000), of which £5,168 was repaid during the year. At the year end, the amount due from directors was £7,832 (2024: £Nil). The balance was interest-free, repayable on demand and was fully repaid after the year end.
Page 39
COLORADO GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2025
In the opinion of the Directors, J P Bownes & G W Gibson are the controlling party by virtue of their joint majority shareholding in Colorado Group Limited.
Page 40