REGISTERED NUMBER: 04503934 (England and Wales)

Strategic Report,

Report of the Directors and

Audited Financial Statements

for the Year Ended 31 March 2026

for

Thomas Bow Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

6

Report of the Independent Auditors

8

Statement of Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Notes to the Financial Statements

15

DIRECTORS:

A T Bow

J E Allen

J W Atherton-Ham

K G Carmichael

J S Haluch

A E Thorpe

REGISTERED OFFICE:

Ashbow Court

4-12 Middleton Street

Lenton

Nottingham

NG7 2AL

REGISTERED NUMBER:

04503934 (England and Wales)

AUDITORS:

Mabe Allen LLP

Chartered Accountants & Statutory Auditors

50 Osmaston Road

Derby

DE1 2HU

BANKERS:

Virgin Money

11 Smithy Row

Nottingham

NG1 3EJ

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

Turnover for the year was £36,256,000 (2025 - £37,561,000) and pre-tax profits for the year amounted to £1,444,000 (2025 - £1,332,000).

The company remains well-capitalised with net assets of £3,158,000 (2025 - £3,072,000) and maintains a strong liquidity position, the cash balance at 31 March 2026 being £5,850,000 (2025 - £5,578,000).

As a civil engineering and highway surfacing contractor, the company continues to operate within its core geographical area of the Midlands and Yorkshire and on long-term customer projects throughout the UK.

Our strategy is to deliver infrastructure services to support, develop and maintain the UK's vital road networks, built environment and public realm whilst striving for best customer service.

Our vision is to be a leading infrastructure business delivering a "One-Stop-Shop" through collaboration, protection of resources, building a "right first time" philosophy, ensuring a high level of customer service, giving each client director access. We aim to maintain these exceptionally high standards, no matter what size of job. The quality and commitment of our team is paramount to ensuring that we consistently exceed our customers' expectations.

We consider that our key financial performance indicators are those that communicate the financial performance of the business, these being turnover, gross profit and gross margin. These are shown below.

Turnover - £36,256,000 (2025 - £37,561,000)

Gross Profit - £3,279,000 (2025 - £3,039,000)

Gross Profit Margin - 9.0% (2025 - 8.1%)

Additional key performance analysis for material spend, direct labour costs, sub-contractor costs, external plant hire spend, depot costs, individual contract performance and overhead costs are all monitored and communicated on a monthly basis.

REVIEW OF BUSINESS

After a slow start back in April, May & June and poor weather in November & December, we completed the year ahead of budget helped by strong orders and dryer weather in our final quarter.

During the year, the company continued to benefit from continued work awarded at Witham St Hughs, strong performances from all our framework and partnership contracts and our Breedon Bow partnership also contributed a strong performance with the closure of some final accounts allowing for a strong financial finish to the year.

Strategic activities included the implementation of our Mind Wellbeing and Employee Welfare plan, improving the contents and our Information Management Systems making it easier to follow and access, PAS 2080 Preparation and Carbon reporting, the roll out of our new Finance Operating System along with adding additional security to our IT systems.

The outlook for 2026/2027 is more uncertain, with changes to public sector procurement (DPS) and fewer direct award frameworks being offered, putting pressure on margins as we continue to see competitive pricing in all sectors. Although the geopolitical landscape remains unpredictable, particularly with the added pressures surrounding reorganisations of local authority boundaries, there are spending programmes in place especially within the East Midlands Combined Authority area and there is the potential for regulatory and planning reforms to accelerate construction activity. We continue to navigate the environment effectively and have secured positions on high profile projects on the A52 Radcliffe on Trent, Public Realm works in Oakham & Uppingham and our Junction Improvements on the A607 Grantham Gyratory.

We are continually seeing supply of asphalt and other materials especially concrete outstripping demand and extremely aggressive pricing from our competitors defending market share will continue. In common with most other businesses, we have continued to be impacted by increases in the cost of labour, plant and materials. Notwithstanding these challenges, the company has succeeded in maintaining gross profit margins. With the continuing conflicts in Eastern Europe and the Middle East, and effects of central government tax increases, prospects for the next two or three years are uncertain. Despite these challenges, we are cautiously optimistic that we will see surfacing volumes hold steady and we will continue to monitor costs, as well as seeking growth opportunities in our traditional markets and beyond, maintaining market share. Further growth will be from new markets within the West Midlands, acquisitions, gaining entry onto new frameworks, and targeted term maintenance contracts that fall within our geographical area of operation, along with the development of our "One-Stop-Shop" philosophy.

PRINCIPAL RISKS AND UNCERTAINTIES

Our ability to identify and manage the risks to our business is an important element of ensuring our continued success. The company's approach to risk management is to identify key risks and then to develop actions or processes within the business to eliminate or mitigate those risks to an acceptable level.

The directors have identified the following key strategic and operational risks:

Market conditions - As contractors within the construction sector, our order book and operations are influenced by macro-economic factors, including public sector capital and maintenance budgets, over which we have little control. Where possible, we endeavour to mitigate this risk by having a diversified client base across the public and private sectors.

Competition and margins - To remain competitive, we continue to focus on delivering and completing our projects to the highest possible standards, on time and on budget. The company recognises the fact that efficiently managing each contract is of vital importance to its continued success and profitability. Strong management and financial controls are in place in respect of contract management, including a proactive job-costing system and strong procurement policies and procedures.

Input costs - Global conflicts and administration changes have contributed toward challenges with regard to certain building products, plant items and especially labour in terms of increased availability and cost issues. Where possible, this is mitigated in conjunction with our clients by pre-planning and working with extended supply chains.

Health, safety, wellbeing and environmental impact - Managing our impact on the environment and the health and safety of all employees, customers and contractors is of vital importance to the business. The company has in place, processes and procedures designed to mitigate health and safety risks and any potential environmental issues. These policies are regularly reviewed to ensure all are up to date and meet the requirements of all relevant parties.

People - The company recognises a key factor in its continued success is its ability to attract, retain and develop the best workforce that it can. The company has an excellent record in retaining its key staff and will strive to continue this by ensuring staff development and training is encouraged at all levels.

In support of our people strategy, Thomas Bow are developing a high performing culture, where employees feel part of the Thomas Bow family and love to be here.

We will create positivity and energy to maximise opportunities and find solutions for our clients through working collaboratively and demonstrating our willingness to learn and mentor others. We will foster mutual trust and respect by ensuring honest open communication and consultation across the organisation.

We will hold each other accountable to deliver the company objective of sustainable growth and to act in the Thomas Bow way.

SECTION 172(1) STATEMENT

The Board of Thomas Bow Limited is of the opinion that it has acted in a way which would be likely to promote the success of the Company for the benefit of the stakeholders through the decisions it has taken in the year to 31 March 2026.

Stakeholder engagement provides the Board with insight as to what matters most to our stakeholders. The Board values the feedback that this engagement provides which allows us to build trust, balance interests, needs and concerns, and make better decisions for all those affected.

The Board recognised the critical role stakeholders play in the long-term success of the Company and is committed to building sustainable and resilient relationships with them.

The Board considers the Company to have four distinct groups of key stakeholders. These groups and examples of how the Board has considered their interests in the year are set out below:

Colleagues - Improved engagement with colleagues ensures we develop, motivate and retain our valued workforce while promoting and attracting new colleagues who want to work for us. All colleagues are offered a fair benefits and compensation package relative to their role and level in the organisation.

Customers and suppliers - Engaging with our customers helps us deliver excellent customer service and build relationships to enable us to get the right product, to the right place, at the right time for the right price. Engaging with our suppliers helps us deliver a sustainable supply chain and circular economy. The Company recognises the significant role its suppliers play in continuing our success. We endeavour to maximise value from our suppliers and work with them to support the delivery of our customers' needs.

Communities - Positive engagement with our communities ensures that we understand and take into account their concerns and needs so that we can address these and improve the communities that we live and work in. We seek to take into account the interests and concerns of the communities in which we operate.

Regulators, local government, and industry associations - Through our engagement we are able to respond and contribute to sector needs and requirements, deliver on compliance and regulatory standards, and have input in their development. We are committed to adherence of our legal and regulatory obligations. We actively support our industry representations in pursuing the best regulatory regime for our business.

The Company is exempt from the Streamlined Energy and Carbon Reporting requirements under paragraph 20A(2) of Schedule 7 to the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 as it is included within the SECR disclosures contained in the group strategic report of its parent undertaking.

ON BEHALF OF THE BOARD:

A T Bow - Director

7 August 2026

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of general construction, civil engineering and surfacing contractors.

DIVIDENDS

The total distribution of dividends for the year ended 31 March 2026 was £988,000.

An interim dividend of £987.67 per share, in respect of the year ended 31 March 2026, was declared and paid on the A Ordinary £1 shares on 14 November 2025.

An interim dividend of £987.67 per share, in respect of the year ended 31 March 2026, was declared and paid on the B Ordinary £1 shares on 14 November 2025.

FUTURE DEVELOPMENTS

Information regarding the company's likely future developments and strategic priorities is disclosed in the Strategic Report on pages 2 to 5.

DIRECTORS

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

A T Bow

J E Allen

J W Atherton-Ham

K G Carmichael

J S Haluch

A E Thorpe

QUALIFYING THIRD PARTY INDEMNITY PROVISION

The company has provided an indemnity for its directors, which is a qualifying third party indemnity provision for the purposes of the Companies Act 2006.

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

A T Bow - Director

7 August 2026

Opinion

We have audited the financial statements of Thomas Bow Limited (the 'company') for the year ended 31 March 2026 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 March 2026 and of its profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

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

- The nature of the industry and sector, control environment and business performance including targets for income and net profit;

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

- Any matters we identified having obtained and reviewed the company's documentation of their policies and procedures relating to:

- Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance, including any related to the General Data Protection Regulation or Bribery Act 2010;

- Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

- The internal controls to mitigate risks of fraud or non-compliance with laws and regulations;

- The matters discussed among the audit engagement team and including relevant internal tax specialists regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

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

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies Act 2006 and the Financial Reporting Standard 102.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. These include The General Data Protection Regulation, the Bribery Act 2010 and Health and Safety policies.

Audit response to risks identified

Our procedures to respond to risks identified above include the following:

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

- Enquiring of management and directors concerning actual and potential litigation and claims;

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

- in addressing the fraud risk in revenue recognition we have tested a sample of revenue recorded in the year through agreement to the relevant sales terms and conditions and bank statements. Additionally, at an analytical review level, we developed an expectation of the revenue with reference to our experience of the client and discussions on the recognition and volatility of revenue in the year ; and

- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

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

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

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

Use of our report

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

Neil Higgins FCCA (Senior Statutory Auditor)

for and on behalf of Mabe Allen LLP

Chartered Accountants & Statutory Auditors

50 Osmaston Road

Derby

DE1 2HU

7 August 2026

TURNOVER

3

36,256

37,561

Cost of sales

32,977

34,522

GROSS PROFIT

3,279

3,039

Administrative expenses

2,330

1,998

949

1,041

Other operating income

351

133

OPERATING PROFIT

5

1,300

1,174

Interest receivable and similar income

154

158

1,454

1,332

Interest payable and similar expenses

6

10

-

PROFIT BEFORE TAXATION

1,444

1,332

Tax on profit

7

370

345

PROFIT FOR THE FINANCIAL YEAR

1,074

987

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,074

987

FIXED ASSETS

Tangible assets

9

1,140

1,170

Investments

10

-

-

1,140

1,170

CURRENT ASSETS

Stocks

11

70

37

Debtors

12

9,843

9,573

Cash at bank and in hand

5,850

5,578

15,763

15,188

CREDITORS

Amounts falling due within one year

13

13,536

13,065

NET CURRENT ASSETS

2,227

2,123

TOTAL ASSETS LESS CURRENT LIABILITIES

3,367

3,293

PROVISIONS FOR LIABILITIES

16

209

221

NET ASSETS

3,158

3,072

CAPITAL AND RESERVES

Called up share capital

17

2,001

2,001

Retained earnings

18

1,157

1,071

SHAREHOLDERS' FUNDS

3,158

3,072

The financial statements were approved by the Board of Directors and authorised for issue on 7 August 2026 and were signed on its behalf by:

A T Bow - Director

Called up

share

Retained

Total

capital

earnings

equity

£'000

£'000

£'000

Balance at 1 April 2024

2,001

1,052

3,053

Changes in equity

Total comprehensive income

-

987

987

Dividends

-

(968

)

(968

)

Balance at 31 March 2025

2,001

1,071

3,072

Changes in equity

Total comprehensive income

-

1,074

1,074

Dividends

-

(988

)

(988

)

Balance at 31 March 2026

2,001

1,157

3,158

1.	STATUTORY INFORMATION

Thomas Bow Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1,000.

Financial Reporting Standard 102 - reduced disclosure exemptions

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

•

the requirements of Section 7 Statement of Cash Flows.

As permitted by FRS 102 Section 1.12, the company has taken advantage of the disclosure exemptions available in relation to the presentation of a statement of cash flows. Where required, equivalent disclosures are given in the consolidated financial statements of the ultimate parent, Breedon Group plc, a company registered in England & Wales.

Preparation of consolidated financial statements

The financial statements contain information about Thomas Bow Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Breedon Group plc, a company registered in England & Wales.

The results of the Company are included within the consolidated results of Breedon Group plc, a company incorporated in England & Wales with registration number 14739556. Copies of these consolidated financial statements can be obtained from the Company Secretary, Breedon Group plc, Pinnacle House, Breedon Quarry, Breedon On The Hill, Derby, DE73 8AP.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of these financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The judgements, estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are discussed below.

Recognition of profit on long term contracts

Profit recognition is the area requiring the greatest use of judgement and is based on an assessment of the overall profitability forecast on individual contracts. Losses are recognised as soon as they are foreseen. Profits are recognised when the outcome of the contract can be assessed with reasonable certainty. The profit recognised reflects that part of the total profit currently estimated to arise over the duration of the contract that fairly represents the profit attributable to work performed at the accounting date. Contract reviews are undertaken on a monthly basis by the management team.

Recoverability of debtors

Trade and other debtors are recognised to the extent that they are judged recoverable. Management team reviews are performed to estimate the level of provision required for irrecoverable debt. Provision is made specifically against invoices, applications and retentions, as considered appropriate, where recoverability is uncertain.

The management team specifically analyse historical bad debts, customer creditworthiness, current economic trends and changes in customer payment terms when making a judgement to evaluate the adequacy of the provision for doubtful debts. Where the expectation is different from the original estimate, such difference will impact the carrying value of debtors and change the profit and loss account.

Share-based payments

Certain employees of the company have been granted share awards by the ultimate parent company. The company makes use of the exemption in Section 26 of FRS 102 to account for the expense based on a reasonable allocation of the parent company's total expense. The company has calculated its allocation of the parent company's total expense based on the number of participating employees in the company compared to the number of participating employees in the group.

Turnover

Turnover represents net invoiced sales of goods and services, excluding value added tax, as adjusted for movements in sales retentions and work not invoiced.

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.

Improvements to property

-

33% on cost and 10% on cost

Plant and machinery

-

33% on cost, 25% on cost, 20% on cost and 15% on cost

Motor vehicles

-

25% on cost and 20% on cost

Office equipment

-

33% on cost

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Stocks

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

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

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

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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

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.

Employee benefits

The company provides a range of benefits to employees, including annual bonus arrangements, paid holiday arrangements and defined contribution pension plans.

i. Short term benefits

Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received.

ii. Defined contribution pension plans

The company operated a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

iii. Annual bonus plan

The company operates an annual bonus plan for employees. An expense is recognised in the profit and loss account when the company has a legal or constructive obligation to make payments under the plan as a result of past events and a reliable estimate of the obligation can be made.

iv. Share-based payment

Where the company participates in a share-based payment arrangement established by a group company, the company takes advantage of the alternative treatment allowed under Section 26 of FRS 102. The company recognised the share-based payment expense based on an allocation of its share of the group's total expense, calculated in proportion to the number of participating employees.

Dividends

Dividends and other distributions to company's shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the company's shareholders. These amounts are recognised in the statement of changes in equity.

Basic financial instruments

Trade and other debtors are recognised initially at transaction price less attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses.

Trade and other creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method.

3.

TURNOVER

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

4.	EMPLOYEES AND DIRECTORS

2026

2025

£'000

£'000

Wages and salaries

4,736

4,143

Social security costs

640

479

Other pension costs

219

206

5,595

4,828

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

2026

2025

Direct labour and supervision

60

56

Administration

13

15

Directors

2

2

75

73

2026

2025

£'000

£'000

Directors' remuneration

346

331

Directors' long term incentive schemes

276

-

Directors' pension contributions to money purchase schemes

29

19

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

Money purchase schemes

2

2

Information regarding the highest paid director is as follows:

2026

2025

£'000

£'000

Emoluments etc

511

211

Pension contributions to money purchase schemes

10

13

The group provides certain directors with a cash-settled long term incentive plan. Amounts payable under the plan are dependent on the level of business with other group companies and targets set by the group. Directors are required to remain in employment with the group to receive the cash payment. The group does not set aside assets to fund the payments and pays the benefits out of company cash resources. The amount paid in the year is £253,000 (2025: £nil), with £23,000 remaining outstanding at 31 March 2026.

The remaining 4 directors of the Company are also directors of other companies within the Group and their remuneration is paid by and disclosed within the publicly available statutory accounts of those other companies. These directors do not consider that their duties in respect of the Company take up a significant amount of their time and therefore the value disclosed for the proportion of their remuneration received in respect of services to the Company is £nil (2025: £nil).

5.	OPERATING PROFIT

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

2026

2025

£'000

£'000

Depreciation - owned assets

372

321

Depreciation - assets on hire purchase contracts

17

40

Profit on disposal of fixed assets

(31

)

(82

)

Auditors' remuneration

17

16

Share-based payments

15

-

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2026

2025

£'000

£'000

Other interest

10

-

7.

TAXATION

Analysis of the tax charge

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

2026

2025

£'000

£'000

Current tax:

UK corporation tax

382

284

Underprovision in prior year

-

1

Total current tax

382

285

Deferred tax

(12

)

60

Tax on profit

370

345

Reconciliation of total tax charge included in profit and loss

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

2026

2025

£'000

£'000

Profit before tax

1,444

1,332

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

361

333

Effects of:

Expenses not deductible for tax purposes

9

11

Adjustments to tax charge in respect of previous periods

-

1

Total tax charge

370

345