The director presents the strategic report for the year ended 31 May 2025.

The Company’s principal activity during the year remained that of construction. Turnover increased to £13.4m (2024: £11.8m); however, profitability declined, with a loss before taxation of £310,614 compared to a profit in the prior year.

The reduction in profitability reflects a significantly lower gross margin achieved during the period, alongside continued cost pressures within the sector. The director continues to focus on maintaining strong client relationships, cautious and considered monitoring of active projects and measured cost management, to support future financial stability.

The Company maintains a strong balance sheet with net assets of £2.1m and continues to operate without external borrowings.

Contingent liabilities and Going Concern

As outlined in contingent liabilities note 18, the Company is subject to an ongoing legal claim arising in the normal course of business due to an exceptional event (the “Claim”), which the Company is actively defending. The Company holds insurance policies; however, during the on-going litigation, it has been identified that there is uncertainty as to whether, and to what extent, insurers will provide coverage in respect of the Claim.

As a result, the Company is exposed to the risk of adverse outcomes from the legal proceedings without certainty of corresponding recovery under its insurance arrangements. The outcome, timing and financial effect of both the Claim and any associated insurance recovery remain uncertain and cannot be reliably estimated.

During the current year there is now increased uncertainty and potential exposure such that the director now considers the matter to be of greater potential financial consequence to the Company than initially assessed, as the potential exposure could be material to net assets.

The director continues to monitor this matter closely and to take appropriate legal and professional advice. However, the director has concluded that a material uncertainty in relation to going concern exists. Details of this material uncertainty are set out in going concern note 1.2.

Management continually monitor the key risks facing the company, together with assessing the controls used for managing these risks. The board of directors formally reviews and documents the principal risks facing the business at least annually.

The principal risks and uncertainties facing the company are as follows:

i) Contract risk –Time is invested in the tendering process, ensuring a realistic programme and margin to reduce this risk. Projects are closely monitored for performance and any indicators of performance issues are swiftly reviewed and monitored by a pro-active management team.

ii) Competitor pressure – trading conditions remain competitive, and therefore competitor pressure could result in losing sales to key competitors. The company manages this risk by carrying out high quality work and maintaining strong relationships with its key customers.

iii) People – The Company depends upon its management team and highly skilled workforce.

iv) Health & safety issues – The Company operates high standards of health & safety with regular training for all employees and subcontractor’s.

v) Claims - The Company is subject to claims, investigations and legal actions arising in the normal course of business. The director accrues for costs based on the best estimate of known matters in progress. The Company takes legal advice as to the potential outcomes, and no provision is made where the director considers, based on that advice, that the action is unlikely to succeed, or where a sufficiently reliable estimate of the potential obligation cannot be made due to the circumstances of the claim.

Management use a range of performance measures to monitor and manage the business. The KPIs used to determine the progress and performance of the company are set out below:

i) Gross profit margin -The company's gross profit margin in the year under review has decreased to 6.55% (2024: 26.79%).

ii) Net assets – net assets represents the liquidity of the company and amounted to £2,149,864 (2024: £3,409,558).

iii) Financing – The company continues to operate without any bank debt and retains significant cash resources within the Group to provide funding if required.

Due to the aforementioned potential financial exposure arising from an ongoing Claim, the director is taking protective measures in the post year-end period to ensure that the Company remains viable and continues as a going concern, while mitigating the risk of further claims and any impact on ongoing projects.

Since the year end, the Director has therefore determined not to commence new projects until matters are resolved and is undertaking careful cost management to minimise future exposure.

Although the Company is actively defending the Claim, the financial impact of the Claim remains uncertain and cannot be reliably quantified, despite efforts to bring the matter to a conclusion in the post balance sheet period.

The matter has therefore been considered in the director’s assessment of going concern and has resulted in the inclusion of a material uncertainty disclosure in the financial statements.

No other adjusting or non-adjusting events have been identified that would require disclosure or amendment to the financial statements.

Looking forward, the Company’s performance will depend on maintaining contract margins, managing cost inflation and successfully navigating the material uncertainty associated with the Claim against the Company and the Company's insurers response to said Claim. The director is actively taking steps to manage and limit the Company’s potential exposure, including ongoing engagement with legal advisors, close monitoring of developments and the application of appropriate risk management measures. Notwithstanding the uncertainty described above, the director remains focused on sustaining the Company’s operations and preserving its financial position.

On behalf of the board

The director presents his annual report and financial statements for the year ended 31 May 2025.

The director who held office during the year and up to the date of signature of the financial statements was as follows:

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £1,129,000. The director does not recommend payment of a further dividend.

The company's principal financial instruments comprise of bank balances. The main purpose of its financial instrument is to finance the company's operations.

In respect of bank balances, the liquidity risk is managed by transferring funds between the accounts of the company to obtain the maximum rate of interest, whilst not impacting on the immediate financial needs of the company.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

Liquidity risk in respect of creditors is managed by ensuring sufficient funds are available to meet amounts due.

The auditor, Mercer & Hole LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the director must not approve the financial statements unless he is 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 director is required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent; and

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

The director is 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. He is 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.

Qualified opinion on financial statements

We have audited the financial statements of Jessops Construction Limited (the 'company') for the year ended 31 May 2025 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including 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, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 May 2025 and of its loss 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 qualified opinion

The Company is subject to an ongoing Claim, as described in the contingent liabilities note to the financial statements. At the date of approval of the financial statements, the outcome of this matter remains uncertain and the directors have been unable to reliably estimate or quantify the potential financial effect. Consequently, no provision has been recognised, other than legal and professional costs incurred.

In the absence of sufficient appropriate audit evidence regarding the potential financial impact of this matter, we were unable to determine whether any adjustment to provisions, and the associated disclosures in the financial statements, were necessary.

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 Auditor's 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.

Material uncertainty relating to going concern

We draw attention to the Going Concern note 1.2 in the financial statements, which describes that the Company is subject to an ongoing Claim, as disclosed in the above basis for qualification note, the outcome of which remains uncertain and cannot be reliably estimated or quantified. The potential financial effect of this matter could be material.

As stated in the financial statements, this uncertainty indicates that a material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going concern.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the director's report have been prepared in accordance with applicable legal requirements.

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 director's report.

We have nothing to report in respect of the following matters in relation to which 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 director's remuneration specified by law are not made; or

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

As explained more fully in the director's responsibilities statement, the director is 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 director determines is 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

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 auditor's 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 financial statements.

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. These included, but were not limited to, the Companies Act 2006 and tax legislation.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements and the financial report (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate entries including journals to overstate revenue or understate expenditure and management bias in accounting estimates.

Audit procedures performed by the engagement team included:

• discussions with management, including considerations of known or suspected instances of non- compliance with laws and regulations and fraud;

• gaining an understanding of management's controls designed to prevent and detect irregularities; and

• identifying and testing journal entries.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non- compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

Jessops Construction Limited is a company limited by shares incorporated in England and Wales. The registered office is C/o Mercer & Hole, Trinity Court, Church Street, Rickmansworth, WD3 1RT.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of Jessops (Holdings) Limited. These consolidated financial statements are available online from Companies House under company number 09784759.

The financial statements have been prepared on a going concern basis. In making this assessment, the Director has considered the Company’s financial position, cash flow forecasts and principal risks for a period of at least 12 months from the date of approval of these financial statements.true

At 31 May 2025, the Company had net assets of £2,149,864 (2024: £3,409,558) and cash balances of £1,439,699 (2024: £3,482,824). The Company has no external borrowings and is therefore not subject to externally imposed financing constraints.

However, as disclosed in the contingent liabilities note 18, the Company is subject to an ongoing legal claim for which insurance cover may be available; however, there is uncertainty regarding the extent of the recovery from insurers. Accordingly, the Company may be required to bear some or all of any liability arising from the claim. The Director has considered the status of the Claim, legal advice received and the Company's ability to mitigate potential losses through its existing cash reserves and net asset base, however due to the uncertainty, in both the outcome of the Claim and the availability of insurance cover, this gives rise to a material uncertainty which may cast significant doubt on the Company’s ability to continue as a going concern.

Notwithstanding the above, the director has a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the director has adopted the going concern basis in preparing these financial statements.

Turnover represents the value of construction work done during the year net of value added tax. The value of work done is calculated as the certified work, plus the amount anticipated to be certified, adjusted for over and under measure. As described in more detail in note 1.6, revenue and costs are recognised by reference to the stage of completion of construction contracts where it can be reliably measured.

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

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

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 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.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

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

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

The value of work done is calculated as the certified work, plus the amount anticipated to be certified, allowing for over and under measure, this is then used to determine the appropriate amount to recognise as income in a given period. The stage of completion is also measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs.

Amounts due from contract customers (amounts recoverable on contracts) at the year end are included in debtors and are calculated at the estimated value of work done at the balance sheet date that has not been invoiced.

Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.

The company 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 company's balance sheet when the company 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, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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 derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 company after deducting all of its liabilities.

Basic financial liabilities, including creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

In the application of the company’s accounting policies, the director is 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

The company uses the percentage of completion method to recognise project revenue for fixed-price contracts. This method requires the director to estimate the level of services performed at each reporting date as a proportion of the total services to be performed to complete the contract. Variations to estimates could result in the over or under recognition of revenue.

The company establishes a provision for receivables that are estimated not to be recoverable. When assessing recoverability the director considers factors such as the aging of the receivables, past experience of recoverability and the credit profile of individuals or groups of customers.

The company depreciates tangible assets over their estimated useful lives. The estimation of the useful lives of the assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes.

Judgement is applied by management when determining the residual values for tangible fixed assets. When determining the residual value management aim to assess the amount that the company would currently obtain for the disposal of the asset, if it were already of the condition expected a the end of its useful economic life. Where possible this is done with reference to external market prices.

The recognition and measurement of provisions, including those relating to legal claims and associated costs, require the director to exercise judgement in determining whether a present obligation exists at the reporting date and in estimating the likelihood and potential financial impact of any outflow. In assessing such matters, the director considers the status of claims, investigations and legal proceedings, together with advice obtained from external legal advisors.

Where a present obligation exists and a reliable estimate of the financial effect can be made, a provision is recognised in the financial statements based on the director’s best estimate of the expenditure required to settle the obligation. However, where the outcome of a matter is uncertain and a reliable estimate of the potential obligation cannot be made, no provision is recognised, other than for directly attributable legal and professional costs as incurred.

As set out in the contingent liabilities note, the Company is actively defending an ongoing Claim for which the outcome, timing and financial effect remain uncertain and cannot be reliably estimated or quantified at the reporting date. The Company holds insurance policies which may respond to this matter; however, there is uncertainty as to whether, and to what extent, insurers will provide coverage in respect of the Claim.

Given the inherent uncertainty surrounding such matters, actual outcomes may differ from those estimated, and such differences could have a material impact on the Company’s financial position and results in future periods.

An analysis of the company's turnover is as follows:

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

The deferred tax liability set out above is expected to reverse over the life of the qualifying assets and relates to accelerated capital allowances.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Due to the potential financial exposure of the ongoing Claim against the company, the director is taking protective measures in the post year end period to ensure that the company remains viable and a going concern, while mitigating against risk of further claims and any impact on ongoing projects. Since the year end, the Company continues to actively defend the ongoing Claim, however has determined not to undergo any new projects until matters are settled and is undergoing careful cost management to minimise future exposure.

The financial impact remains uncertain and cannot be reliably quantified, despite efforts to bring the matter to conclusion in the post balance sheet period. The Company holds insurance policies which may respond to this matter; however, there is uncertainty as to whether, and to what extent, the insurers will provide coverage in respect of the Claim.

The matter has therefore been considered in the director’s assessment of going concern and has resulted in the inclusion of a material uncertainty disclosure in the financial statements.

No other adjusting or non-adjusting events have been identified which would require disclosure or amendment to the financial statements.

During the year the company entered into the following transactions with related parties:

The following amounts were outstanding at the reporting end date:

The company has taken advantage of the exemption conferred by paragraph 33.1A of FRS 102 "Related Party Disclosures" not to disclose transactions with other group entities, whose voting rights are 100% controlled within the group, and where consolidated financial statements of the group are publicly available. This exemption is available as Jessops Construction Limited is a wholly owned subsidiary of Jessops (Holdings) Limited.

All transactions were made on an arm's length basis. The amounts due are trading balances and therefore are due under normal credit terms.

In the current and prior year, the company was a wholly owned subsidiary of Jessops (Holdings) Limited, as it owned 100% of the issued share capital.

The largest and smallest group in which results of the company are consolidated is that of Jessops (Holdings) Limited. Jessops (Holdings) Limited has a registered office of Trinity Court, Church Street, Rickmansworth, United Kingdom, WD3 1RT.

R Wherry was the ultimate controlling party throughout the prior and current year as he owns 100% of the issued share capital of Jessops (Holdings) Limited.

The Company is subject to claims, investigations and legal actions arising in the normal course of business. The director accrues for costs based on the best estimate of known matters in progress and takes legal advice as to the potential outcomes of such matters. No provision is made where the director considers, based on that advice, that an action is unlikely to succeed or where a sufficiently reliable estimate of the potential obligation cannot be made.

Among these matters, there is one ongoing Claim which the Company is actively defending that is of particular significance. At the balance sheet date, the outcome remains uncertain and the potential financial effect cannot be reliably estimated or quantified. Accordingly, no provision has been recognised in respect of this claim beyond legal and professional costs. The Company holds insurance policies which may respond to this matter; however, there is uncertainty as to whether, and to what extent, the insurers will provide coverage in respect of the Claim.

Due to the uncertainty surrounding both the likelihood and potential magnitude of any liability arising from this matter, it gives rise to a material uncertainty that may cast significant doubt on the Company’s ability to continue as a going concern, as further described in the going concern note. The Company continues to monitor developments closely and to take appropriate legal advice.