Registered number: 02081940
For the year ended 31 March 2026
KNIGHTS BROWN CONSTRUCTION LTD
COMPANY INFORMATION
KNIGHTS BROWN CONSTRUCTION LTD
CONTENTS
KNIGHTS BROWN CONSTRUCTION LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2026
The Directors present their Strategic Report of Knights Brown Construction Ltd ('the Company') for the year ended 31 March 2026.
Knights Brown is an independent civil engineering and construction company delivering complex, high-value projects in coasts & ports, energy, water, infrastructure and buildings across southern England, Wales and the UK's energy network. The Company works for a broad range of public and private sector customers, including defence organisations, where its directly employed workforce and proven track record of working in secure, live operational environments are a key differentiator.
The Company’s key performance indicators were as follows:
The Company delivered a significantly improved financial performance year on year, with strong revenue growth and higher profitability. Turnover increased by 17% to £136.3 million (2025: £116.4 million) and gross profit margin improved to 11.2% (2025: 10.2%) reflecting strategic project selection, effective delivery and disciplined commercial management. Operating profit increased by 42% to £5.4 million (2025: £3.8 million) indicating increased efficiencies and robust controls as the business expanded.
Coasts & ports and energy were particularly strong performers during the year, underpinned by technical expertise and established customer relationships. Growth in energy was driven by expanding activity in transmission & distribution, while the Mumbles and Cardiff coastal defence schemes made a notable contribution to financial performance.
The Company continues to maintain a balanced pipeline of long-term frameworks, negotiated opportunities and competitively won tenders, providing resilience across sectors and divisions while supporting sustainable growth.
As focus moves from planning to delivery across frameworks with Dwr Cymru Welsh Water, YTL Wessex Water and Northumbrian Water, water is expected to become an increasingly significant contributor, further broadening the company’s customer base and sector mix.
The Company has invested to support sustainable growth. Administration costs increased as a new four-division structure was implemented and supporting functions have been strengthened. This has enhanced governance, capacity and resilience, even while operating profit materially improved.
Robust health, safety, quality and environmental (HSQE) management remains a top priority. The Company reinforces its HSQE culture through visible on site leadership, coaching and challenging behaviour, and building understanding through daily briefings, toolbox talks and targeted campaigns.
The Right Works code of practice gives site teams the tools to continually improve in six recognised pillars of excellent operational delivery, underpinned by the deliberate and sustained management of risk and opportunity.
Investment in learning and development continues to equip individuals to achieve their career goals and actively contribute to the company’s success. The Company retained its IIP Gold status, reflecting its commitment and organisational development.
The Company’s key performance indicators were as follows:
The Company delivered a significantly improved financial performance year on year, with strong revenue growth and higher profitability. Turnover increased by 17% to £136.3 million (2025: £116.4 million) and gross profit margin improved to 11.2% (2025: 10.2%) reflecting strategic project selection, effective delivery and disciplined commercial management. Operating profit increased by 42% to £5.4 million (2025: £3.8 million) indicating increased efficiencies and robust controls as the business expanded.
Coasts & ports and energy were particularly strong performers during the year, underpinned by technical expertise and established customer relationships. Growth in energy was driven by expanding activity in transmission & distribution, while the Mumbles and Cardiff coastal defence schemes made a notable contribution to financial performance.
The Company continues to maintain a balanced pipeline of long-term frameworks, negotiated opportunities and competitively won tenders, providing resilience across sectors and divisions while supporting sustainable growth.
As focus moves from planning to delivery across frameworks with Dwr Cymru Welsh Water, YTL Wessex Water and Northumbrian Water, water is expected to become an increasingly significant contributor, further broadening the company’s customer base and sector mix.
The Company has invested to support sustainable growth. Administration costs increased as a new four-division structure was implemented and supporting functions have been strengthened. This has enhanced governance, capacity and resilience, even while operating profit materially improved.
Robust health, safety, quality and environmental (HSQE) management remains a top priority. The Company reinforces its HSQE culture through visible on site leadership, coaching and challenging behaviour, and building understanding through daily briefings, toolbox talks and targeted campaigns.
The Right Works code of practice gives site teams the tools to continually improve in six recognised pillars of excellent operational delivery, underpinned by the deliberate and sustained management of risk and opportunity.
Investment in learning and development continues to equip individuals to achieve their career goals and actively contribute to the company’s success. The Company retained its IIP Gold status, reflecting its commitment and organisational development.
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KNIGHTS BROWN CONSTRUCTION LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
The ‘Inspiring Leaders’ programme is being cascaded further into the business, supporting the strategic aim of being a thriving, modern business and fostering a supportive and empowering culture.
Commercial risk
Pre-contract commercial and financial evaluations subject potential customers and contracts to due diligence, ensuring risks such as contract terms and credit-worthiness are fully considered. Regular commercial and financial reviews of every project ensure risks and opportunities are identified and addressed promptly.
Interest rate risk
Purchases of plant and equipment are generally procured through hire purchase arrangements with fixed interest rates to eliminate exposure to interest rate rises. A revolving credit facility secured on a floating rate also limits exposure to interest rate rises.
Debt risk
Access to the company’s revolving credit facility depends on continued compliance with agreed financial covenants.
Macro-economic risk
Strong competitive pressures exist in regional markets with the key to winning new business more dependent on differentiation through factors such as environmental performance, social value, governance and digital capability alongside financial resilience, programme certainty and technical competence.
Significant macro-economic factors impact the cost and availability of materials, products and personnel. The Company has reviewed areas of risk and taken action to address issues including those related to its supply chain and customer contracts.
Pre-contract commercial and financial evaluations subject potential customers and contracts to due diligence, ensuring risks such as contract terms and credit-worthiness are fully considered. Regular commercial and financial reviews of every project ensure risks and opportunities are identified and addressed promptly.
Interest rate risk
Purchases of plant and equipment are generally procured through hire purchase arrangements with fixed interest rates to eliminate exposure to interest rate rises. A revolving credit facility secured on a floating rate also limits exposure to interest rate rises.
Debt risk
Access to the company’s revolving credit facility depends on continued compliance with agreed financial covenants.
Macro-economic risk
Strong competitive pressures exist in regional markets with the key to winning new business more dependent on differentiation through factors such as environmental performance, social value, governance and digital capability alongside financial resilience, programme certainty and technical competence.
Significant macro-economic factors impact the cost and availability of materials, products and personnel. The Company has reviewed areas of risk and taken action to address issues including those related to its supply chain and customer contracts.
The Directors anticipate further growth in turnover supported by a high level of secured work, a strong pipeline of opportunities and ongoing high demand for the company’s services across all market sectors.
The Directors have reviewed the forecast financial performance and position of the business. The Directors’ current assessment is that the company has sufficient cash resources to continue operating profitably for the foreseeable future.
The Directors have reviewed the forecast financial performance and position of the business. The Directors’ current assessment is that the company has sufficient cash resources to continue operating profitably for the foreseeable future.
This report was approved by the board and signed on its behalf by:
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KNIGHTS BROWN CONSTRUCTION LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2026
The Directors present their report and the audited financial statements for the year ended 31 March 2026 .
The profit for the year, after taxation, amounted to £4,000,000 (2025: £3,638,000).
The Directors who served during the year and to the date of this report were:
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KNIGHTS BROWN CONSTRUCTION LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
The Directors have made an assessment in preparing these financial statements as to whether the Group is a going concern and concluded that there are no material uncertainties that may cast doubt on the Group's or Company's ability to continue as a going concern.
The Directors have reviewed the forecast financial performance and position of the Company. The Directors’ assessment is that the business will continue to trade profitably, has sufficient cash resources to continue operating for a period of at least 12 months from the date of approval of these financial statements and is not reliant on the existing £2.5m revolving credit facility. Details of the revolving credit facility are in note 20.
The Directors have reviewed the forecast financial performance and position of the Company. The Directors’ assessment is that the business will continue to trade profitably, has sufficient cash resources to continue operating for a period of at least 12 months from the date of approval of these financial statements and is not reliant on the existing £2.5m revolving credit facility. Details of the revolving credit facility are in note 20.
When making decisions, the Directors have regard to the likely long-term consequences of those decisions, the interests of employees, relationships with customers and suppliers, the impact of the Company's operations on communities and the environment, and the desirability of maintaining a reputation for high standards of business conduct.
Employee interests
The Directors recognise that the Company's people and culture are fundamental to its long-term success. It provides a variety of formal and informal channels for dialogue and feedback, including:
Employee interests
The Directors recognise that the Company's people and culture are fundamental to its long-term success. It provides a variety of formal and informal channels for dialogue and feedback, including:
∙Annual conferences that communicate the Company’s progress and encourage continuous improvement.
∙Roundtable discussions, such as ‘Great Place to Work’ steering group and ‘Women in the Workplace’ forum.
∙Right Works ‘Tick-its’, which enable the reporting of good or bad practice, suggested improvements and feedback – anonymously if preferred.
∙Introduction of a new whistleblowing portal, ensuring all employees and workers have a voice to raise concerns anonymously.
∙Annual employee satisfaction surveys to benchmark opinion and identify areas for organisational improvement.
∙Representatives from across the business are invited to join the leadership team in developing our strategic business priorities for the year ahead.
∙Recognition programmes, including:
°Annual ‘Right Works’ Awards and Outstanding Contribution Awards.
°Ad hoc ‘Right Works’ Merit Awards.
°Long Service Awards at five-year intervals.
∙Peer-to-peer recognition via the intranet.
∙Informal communication tools, such as WhatsApp groups and intranet microblogs.
Customers and supply chain interests
The Company prioritises long-term, mutually beneficial relationships with customers and supply chain partners. Its customer satisfaction review process supports this goal.
It supports the principles of the Fair Payment Code’s silver standard of paying all invoices within 60 days and small businesses within 30 days.
It prioritises local spending with SMEs, investing in local skills and supporting sustainable communities.
The Company prioritises long-term, mutually beneficial relationships with customers and supply chain partners. Its customer satisfaction review process supports this goal.
It supports the principles of the Fair Payment Code’s silver standard of paying all invoices within 60 days and small businesses within 30 days.
It prioritises local spending with SMEs, investing in local skills and supporting sustainable communities.
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KNIGHTS BROWN CONSTRUCTION LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
Community interests
The Company recognises the potential impact of its work on communities, including issues such as noise, delivery vehicles and access restrictions. Its approach is to communicate early and regularly, keeping neighbours informed about the nature, purpose and expected impacts of its work.
Its community engagement managers deliver social value by:
Its community engagement managers deliver social value by:
∙Partnering with schools and colleges to promote careers in construction.
∙Highlighting and enabling routes into the industry for apprentices, trainees and graduates.
∙Facilitating community projects through employer supported volunteering opportunities.
Through these endeavours communities benefit from:
∙Local employment.
∙Apprenticeships.
∙Education outreach.
The ‘Goal 13’ climate action strategy outlines the Company’s commitment to reducing its environmental impact. It has set science-based targets to reduce greenhouse gas emissions and publishes a carbon reduction plan, including reporting on selected Scope 3 emissions.
Other stakeholders
Directors meet regularly with the Company’s bankers and annually with issuers of performance bonds to discuss business performance, future expectations and to maintain continuity of financial facilities.
Other stakeholders
Directors meet regularly with the Company’s bankers and annually with issuers of performance bonds to discuss business performance, future expectations and to maintain continuity of financial facilities.
Well-being
The Company supports the well-being of its employees through:
The Company supports the well-being of its employees through:
∙A 24/7 Employee Assistance Programme for employees and their families.
∙Financial support for Lighthouse, the construction industry charity.
∙A network of mental health first aiders.
∙A comprehensive well-being strategy with online resources and signposting of support services.
Development
Investment in the growth and development of its people is made through:
∙Career development planning and a suite of structured role profiles.
∙Visibility of internal vacancies and preference for internal promotions.
∙Leadership skills guidance to support effective teamwork and performance.
∙CPD events, personal development reviews, and structured training schemes, including
o ICE approved graduate training.
o Early careers ‘Aspire’ programme.
o Civil engineering groundworks apprenticeships.
Details of staff numbers and related costs are provided in Note 8.
o Early careers ‘Aspire’ programme.
o Civil engineering groundworks apprenticeships.
Details of staff numbers and related costs are provided in Note 8.
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KNIGHTS BROWN CONSTRUCTION LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
The Company’s commitment to inclusive hiring practices ensures people are not disadvantaged by disability. Every applicant is given full and fair consideration, with reasonable adjustments made to support successful candidates in performing roles effectively.
Every employee has equal access to learning, training and career development opportunities. Our occupational health services and regular wellbeing meetings provide tailored support to facilitate the successful return to work for colleagues with disabilities.
Every employee has equal access to learning, training and career development opportunities. Our occupational health services and regular wellbeing meetings provide tailored support to facilitate the successful return to work for colleagues with disabilities.
In the year, total recorded greenhouse gas emissions reduced significantly to 1,494.1 (2025: 2,030.7) tonnes of carbon dioxide equivalent (tCO2e).
The intensity measure, which records tCO2e per £100,000 revenue, reduced to 1.10 (2025: 1.75).
The Company’s near-term target set with Science Based Targets initiative is a 42% reduction in Scope 1 and Scope 2 emissions by 2030 from the 2020 baseline. Combined emissions reduced 56% from 3,248 tCO2e in 2020 to 1,417 tCO2e in 2026.
Over the same period, its intensity measure reduced 72% from 3.85 to 1.10.
Emissions are calculated using invoice and organisation mileage data. These data have been converted into tonnes of carbon dioxide equivalents (tonnes of CO2e) using the latest figures provided by the Department for Energy Security and Net Zero (DESNZ) and the Department for Environment, Food and Rural Affairs (Defra).
The intensity metric used is tonnes of CO2e per £100,000 revenue. Revenue reflects the scale of business activity and enables meaningful comparison of emissions performance between years, irrespective of fluctuations in workload.
Scope 3 emissions reported relate solely to business travel undertaken in privately owned vehicles. These emissions are reported voluntarily and do not represent the Company's full Scope 3 footprint. The SBTi target includes a commitment to measure and reduce scope 3 emissions and more recently, it has begun to record employee commuting as a separate benchmark.
The disclosure covers all UK operations under the operational control of Knights Brown Construction Ltd.
The Company’s near-term target set with Science Based Targets initiative is a 42% reduction in Scope 1 and Scope 2 emissions by 2030 from the 2020 baseline. Combined emissions reduced 56% from 3,248 tCO2e in 2020 to 1,417 tCO2e in 2026.
Over the same period, its intensity measure reduced 72% from 3.85 to 1.10.
Emissions are calculated using invoice and organisation mileage data. These data have been converted into tonnes of carbon dioxide equivalents (tonnes of CO2e) using the latest figures provided by the Department for Energy Security and Net Zero (DESNZ) and the Department for Environment, Food and Rural Affairs (Defra).
The intensity metric used is tonnes of CO2e per £100,000 revenue. Revenue reflects the scale of business activity and enables meaningful comparison of emissions performance between years, irrespective of fluctuations in workload.
Scope 3 emissions reported relate solely to business travel undertaken in privately owned vehicles. These emissions are reported voluntarily and do not represent the Company's full Scope 3 footprint. The SBTi target includes a commitment to measure and reduce scope 3 emissions and more recently, it has begun to record employee commuting as a separate benchmark.
The disclosure covers all UK operations under the operational control of Knights Brown Construction Ltd.
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KNIGHTS BROWN CONSTRUCTION LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
Initiatives from the past 12 months
The 26% year-on-year reduction in tCO2e (588.2 tCO2e) was primarily attributable to the phased introduction of HVO in company-owned plant, which significantly reduced reported greenhouse gas emissions associated with fuel consumption. This was fully implemented in February 2026 with supporting HVO policy and risk register, informed by guidance from Action Sustainability and the Supply Chain Sustainability School in the “Responsible Sourcing of HVO” guide.
To support commitments to eliminate non-hazardous excavation waste to landfill by 2030 and avoidable waste to landfill by 2040, the Company dedicated significant resource to embedding the recording of accurate waste data in its SmartWaste tool. Waste contractors are now required to be prequalified and are enabled to submit data directly to SmartWaste through a variety of means, including automatic transfer from their own management systems by using the application programme interface. Companywide compliance is now close to universal. Although not currently included within reported SECR emissions, improved waste data will support future benchmarking and reporting of additional Scope 3 categories.
Attention has also been focused on improving the accuracy of idling reporting to support the no idling campaign. Through analysis of telematics data, it is now understood that idling is not spread evenly across the business but that a relatively small number of vans, machines and sites are responsible for a large proportion of idling. Examples of where idling has been reduced shows that the issue is not unavoidable but comes down to how plant or vehicles are managed. This improved insight enables more effective, targeted follow up rather than blanket action.
Hybrid generators have been identified as one of the most promising opportunities to support more efficient and sustainable site operations. Hybrid generators combine a battery system with a smaller generator, which only runs when required to recharge the battery. This dramatically reduces runtime, fuel consumption and emissions. The Company’s preferred supplier, Renewable Temporary Power, supplies hybrid units that include detailed telemetry, enabling visibility where generators have been over specified and allowing for cheaper, lower power alternatives to be swapped in without compromising performance. For this reason, RTP hybrid generators have been introduced to the business as a preferred option.
Electric vehicles continue to be popular among employees leading to the introduction of a procedure for the installation of site charging points.
Employees continue to support the Company’s Goal 13 climate action strategy. Looking ahead, work is underway to publish a universal standard that will bring consistency to site set up and behaviour at all the Company’s sites as progress continues to embed sustainable practices as business as usual.
The 26% year-on-year reduction in tCO2e (588.2 tCO2e) was primarily attributable to the phased introduction of HVO in company-owned plant, which significantly reduced reported greenhouse gas emissions associated with fuel consumption. This was fully implemented in February 2026 with supporting HVO policy and risk register, informed by guidance from Action Sustainability and the Supply Chain Sustainability School in the “Responsible Sourcing of HVO” guide.
To support commitments to eliminate non-hazardous excavation waste to landfill by 2030 and avoidable waste to landfill by 2040, the Company dedicated significant resource to embedding the recording of accurate waste data in its SmartWaste tool. Waste contractors are now required to be prequalified and are enabled to submit data directly to SmartWaste through a variety of means, including automatic transfer from their own management systems by using the application programme interface. Companywide compliance is now close to universal. Although not currently included within reported SECR emissions, improved waste data will support future benchmarking and reporting of additional Scope 3 categories.
Attention has also been focused on improving the accuracy of idling reporting to support the no idling campaign. Through analysis of telematics data, it is now understood that idling is not spread evenly across the business but that a relatively small number of vans, machines and sites are responsible for a large proportion of idling. Examples of where idling has been reduced shows that the issue is not unavoidable but comes down to how plant or vehicles are managed. This improved insight enables more effective, targeted follow up rather than blanket action.
Hybrid generators have been identified as one of the most promising opportunities to support more efficient and sustainable site operations. Hybrid generators combine a battery system with a smaller generator, which only runs when required to recharge the battery. This dramatically reduces runtime, fuel consumption and emissions. The Company’s preferred supplier, Renewable Temporary Power, supplies hybrid units that include detailed telemetry, enabling visibility where generators have been over specified and allowing for cheaper, lower power alternatives to be swapped in without compromising performance. For this reason, RTP hybrid generators have been introduced to the business as a preferred option.
Electric vehicles continue to be popular among employees leading to the introduction of a procedure for the installation of site charging points.
Employees continue to support the Company’s Goal 13 climate action strategy. Looking ahead, work is underway to publish a universal standard that will bring consistency to site set up and behaviour at all the Company’s sites as progress continues to embed sustainable practices as business as usual.
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KNIGHTS BROWN CONSTRUCTION LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
The Company has chosen in accordance with Companies Act 2006, s414C(11) to set out in the Company’s Strategic Report information required by Schedule 7 to the Large and Medium-sized Companies and Groups (Accounts and reports) Regulations 2008. Certain matters which are required to be disclosed in the Directors’ Report have been omitted as they are included in the Strategic Report on pages 1 to 2. These matters relate to the business review, principal risks and uncertainties and future developments.
The auditor, Forvis Mazars LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf by:
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KNIGHTS BROWN CONSTRUCTION LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KNIGHTS BROWN CONSTRUCTION LTD
Opinion
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
Conclusions relating to going concern
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.
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.
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KNIGHTS BROWN CONSTRUCTION LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KNIGHTS BROWN CONSTRUCTION LTD
Other information
Opinions on other matters prescribed by the Companies Act 2006
Matters on which we are required to report by exception
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KNIGHTS BROWN CONSTRUCTION LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KNIGHTS BROWN CONSTRUCTION LTD
Responsibilities of Directors
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KNIGHTS BROWN CONSTRUCTION LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KNIGHTS BROWN CONSTRUCTION LTD
Use of the audit 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 auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the 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 the behalf of Forvis Mazars LLP
Chartered Accountants and Statutory Auditor
5th Floor
Merck House
Seldown Lane
Poole
Dorset
Dorset
BH15 1TW
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KNIGHTS BROWN CONSTRUCTION LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2026
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KNIGHTS BROWN CONSTRUCTION LTD
REGISTERED NUMBER: 02081940
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2026
The notes on pages 16 to 33 form part of these financial statements.
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KNIGHTS BROWN CONSTRUCTION LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2026
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KNIGHTS BROWN CONSTRUCTION LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
Knights Brown Construction Ltd (no. 02081940) is a private company limited by shares, incorporated in England and Wales. The address of its registered office is 160 Christchurch Road, Ringwood, Hampshire, BH24 3AR.
The principal activity of the Company is as a civil engineering and construction company delivering projects in coasts & ports, energy, water, infrastructure and buildings across southern England, Wales and the UK's energy network.
The principal activity of the Company is as a civil engineering and construction company delivering projects in coasts & ports, energy, water, infrastructure and buildings across southern England, Wales and the UK's energy network.
2.Accounting policies
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The financial statements have been presented in Pound Sterling as this is the currency of the primary economic environment in which the Company operates and is rounded to the nearest thousand pounds.
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Knights Brown Group Holdings Limited as at 31 March 2026 and these financial statements may be obtained from Companies House.
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KNIGHTS BROWN CONSTRUCTION LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
2.Accounting policies (continued)
The Directors have reviewed the forecast financial performance and position of the Company. The Directors’ assessment is that the business will continue trading profitably, has sufficient cash resources to continue operating for a period of at least 12 months from the date of approval of these financial statements and is not reliant on the existing £5m revolving credit facility. Details of the revolving credit facility are in note 20.
The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.
Long-term contracts are assessed on a contract by contract basis and reflected in profit or loss by recording turnover and related costs as contract activity progresses. Turnover is ascertained in a manner appropriate to the stage of completion of the contract and credit taken for profit earned to date when the outcome of the contract can be assessed with reasonable certainty. Full provision is made for losses on all contracts in the year in which the loss is first foreseen.
Amounts recoverable on contracts
Amounts recoverable on contracts are included in debtors and represent the value of work done in excess of amounts invoiced to the customer.
Payments on account
Payments on account are included in creditors and represent amounts receivable from the customer in excess of the Company's valuation of work done.
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KNIGHTS BROWN CONSTRUCTION LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
2.Accounting policies (continued)
At each reporting date the Company 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.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
Intangible assets amortisation is recorded in 'administrative expenses' in the Statement of Comprehensive Income.
At each reporting date the Company 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 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 within 'Other operating income' in the Statement of Comprehensive Income.
Tangible fixed assets depreciation is recorded in 'administrative expenses' in the Statement of Comprehensive Income.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within 'Other operating income' in the Statement of Comprehensive Income.
Tangible fixed assets depreciation is recorded in 'administrative expenses' in the Statement of Comprehensive Income.
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KNIGHTS BROWN CONSTRUCTION LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
2.Accounting policies (continued)
Assets held under hire purchase agreements are capitalised and disclosed under tangible fixed assets at their fair value. The capital element of the future payments is treated as a liability and the interest is charged to profit or loss at a constant rate of charge on the balance of capital repayments outstanding.
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 profit or loss.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.
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KNIGHTS BROWN CONSTRUCTION LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
2.Accounting policies (continued)
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.
Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an 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.
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KNIGHTS BROWN CONSTRUCTION LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
2.Accounting policies (continued)
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KNIGHTS BROWN CONSTRUCTION LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
Revenue Recognition - Long term contract accounting
Revenue is recognised for long term contracts based on the level of completion of the contract activity. This is ascertained by undertaking a valuation of the works carried out on a contract by contract basis. Particular judgement is required in evaluating the level of revenue completed by the year end. However, management carefully considers the accuracy of these valuations by reviewing the recoverability of work in progress balance by reference to the post balance sheet event period.
Impairment of non-financial assets
The Company makes judgements regarding whether impairment indicators exist based on legal factors, market conditions and operating performances of the asset groups. Future events could cause the Company to conclude that impairment indicators exist and that the carrying values of these assets are impaired.
All of the turnover arose in the UK and from long term contracts.
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KNIGHTS BROWN CONSTRUCTION LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
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KNIGHTS BROWN CONSTRUCTION LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
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KNIGHTS BROWN CONSTRUCTION LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
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KNIGHTS BROWN CONSTRUCTION LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
12.Tax on profit (continued)
There are no factors that may affect future tax charges.
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KNIGHTS BROWN CONSTRUCTION LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
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KNIGHTS BROWN CONSTRUCTION LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
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KNIGHTS BROWN CONSTRUCTION LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
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KNIGHTS BROWN CONSTRUCTION LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
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KNIGHTS BROWN CONSTRUCTION LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
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KNIGHTS BROWN CONSTRUCTION LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
Share premium account
Profit & loss account
As at 31 March 2026 the Company had capital commitments of £nil to purchase plant and motor vehicles (2025: £1,998,000).
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KNIGHTS BROWN CONSTRUCTION LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
The immediate parent company is Knights Brown Ltd by virtue of its 100% shareholding. The ultimate parent undertaking and controlling party is Knights Brown Group Holdings Limited .
The largest and smallest group of undertakings, for which group accounts for the year ended 31 March 2026 have been drawn up, is that headed by Knights Brown Group Holdings Limited. Copies of the group accounts can be obtained from Companies House. The registered office of Knights Brown Group Holdings Limited is 160 Christchurch Road, Ringwood, Hampshire, BH24 3AR.
The Directors do not consider there to be an ultimate controlling party of Knights Brown Group Holdings Limited.
The largest and smallest group of undertakings, for which group accounts for the year ended 31 March 2026 have been drawn up, is that headed by Knights Brown Group Holdings Limited. Copies of the group accounts can be obtained from Companies House. The registered office of Knights Brown Group Holdings Limited is 160 Christchurch Road, Ringwood, Hampshire, BH24 3AR.
The Directors do not consider there to be an ultimate controlling party of Knights Brown Group Holdings Limited.
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