P J Towey Construction Limited Company accounts

COMPANY REGISTRATION NUMBER: 05944396

P J Towey Construction Limited

Financial Statements

31 January 2026

P J Towey Construction Limited

Financial Statements

Year ended 31 January 2026

Contents	Page

Officers and professional advisers	1

Strategic report	2

Directors' report	6

Independent auditor's report to the members	8

Statement of income and retained earnings	12

Statement of financial position	13

Statement of cash flows	14

Notes to the financial statements	15

P J Towey Construction Limited

Officers and Professional Advisers

The board of directors	Mr P Towey Jnr
	Mr M Towey
	Mrs L Roberts

Registered office	Gladstone House
	373 Haydn Road
	Sherwood
	Nottingham
	NG5 1DZ

Auditor	Xeinadin Audit Limited
	Chartered Accountants & statutory auditor
	Maple House
	Level 5A
	149 Tottenham Court Road
	London
	W1T 7NF

P J Towey Construction Limited

Strategic Report

Year ended 31 January 2026

Review of business

The Company is a contractor specialising in groundworks, infrastructure, and civil engineering services, primarily serving residential developers throughout the Midlands and North of England. Based in the East Midlands, the Company has established a strong reputation for delivering safe, high-quality projects on time and within budget. Despite ongoing economic uncertainty, inflationary pressures, skills shortages, and changing regulatory requirements, demand for housing infrastructure continues to provide opportunities for sustainable growth. The Board remains focused on maintaining profitability, enhancing operational efficiency, investing in people, and strengthening long-term relationships with customers and supply chain partners. The Company's principal activities comprise: -Groundworks for residential housing developments -Roads and sewers construction -Drainage and infrastructure installation -Earthworks and site preparation -Section 278 and highway improvement works -Utilities and associated civil engineering activities The majority of projects are undertaken across the Midlands and North of England, with a significant proportion of revenue generated from repeat business with major national and regional housebuilders. Business Review The Company has continued to deliver a solid operational performance during the year despite challenging market conditions. Key achievements included: -Successful delivery of multiple housing infrastructure projects. -Continued growth in secured work with existing clients. -Continued development of apprentices and operational staff. -Strengthening of environmental and sustainability initiatives. Management remained focused on maintaining project margins through effective contract management, cost control, and procurement strategies, whilst ensuring high standards of quality and customer satisfaction. Market Conditions The UK construction and civil engineering sectors experienced a mixed trading environment during the year. Challenges included: -Ongoing labour and skills shortages. -Cost inflation affecting materials and subcontractor services. -Elevated interest rates impacting development activity. -Planning delays and regulatory changes. Nevertheless, the Company's core markets remained relatively resilient due to:-Long-term housing demand across the UK. -Continued investment in regional infrastructure. -Government commitments to levelling-up and transport improvements. The East Midlands remains a strategically important location, benefiting from strong transport links, distribution networks, population growth, and significant residential development activity. Strategy and Future Development The Company's strategy is built around five key objectives: 1. Sustainable Growth The Company aims to grow through: -Expansion of existing client relationships. -Selective acquisition of new customers. -Geographic growth across Yorkshire, the North West, and North East regions. Investment in bid management and business development activities will support these objectives. 2. Operational Excellence The Company continues to improve operational performance through: -Enhanced project planning and programming. -Improved cost management and reporting. -Improved procurement and supply chain management. Focus remains on protecting margins whilst maintaining high delivery standards. 4. Safety Leadership Maintaining a safe working environment remains a fundamental priority. Continuous improvement initiatives include: -Enhanced site inspections. -Ongoing compliance monitoring. The Board remains committed to achieving industry-leading safety performance. 5. Environmental Sustainability The Company recognises its responsibility to reduce environmental impacts. Key focus areas include: -Reduction of fuel consumption. -Increased use of low-emission plant. -Biodiversity protection measures. The business will continue to align with client sustainability objectives and emerging environmental regulations. Principal Risks and Uncertainties The Board regularly reviews risks affecting the business. Economic Risk Economic downturns, inflation, interest rates and reduced construction activity could impact future demand and profitability. Mitigation -Diversified customer base. -Strong financial management. -Robust tender assessment processes. Labour and Skills Shortages The construction industry continues to face recruitment challenges in both operational and management roles. Mitigation -Employee retention initiatives. -Investment in training and development. Health and Safety Risk Construction activities involve inherent operational risks. Mitigation -Comprehensive safety management systems. -Regular audits and inspections. -Ongoing workforce training. Contractual and Commercial Risk Project delays, disputes and cost overruns could affect profitability. Mitigation -Robust contract reviews. -Detailed project controls. -Experienced commercial management teams. Environmental and Regulatory Risk Increasing environmental requirements and regulatory changes may create additional compliance obligations. Mitigation -Environmental management systems. -Continuous monitoring of legislation. -Investment in sustainable working practices. Stakeholder Engagement The Board recognises the importance of maintaining strong relationships with all stakeholders. Customers The Company maintains long-term relationships by: -Delivering high-quality projects. -Meeting programme commitments. -Providing proactive project management. Supply Chain Partners The business works collaboratively with suppliers and subcontractors to:-Improve performance. -Manage costs. -Ensure reliable project delivery. Local Communities The Company seeks to minimise disruption and maximise positive social value through community engagement, local employment, and responsible working practices. Financial Position The Company remains financially stable with a strong order book and a healthy pipeline of future opportunities. Management continues to focus on: -Cash generation. -Margin protection. -Working capital management. The Board believes the Company is well positioned to capitalise on future opportunities while managing market uncertainty. Outlook Whilst economic conditions remain challenging, the Company enters the next financial year with confidence. The business benefits from: -Established client relationships. -Strong regional presence. -Experienced management team. -Skilled workforce. -Healthy order book. Continued demand for housing infrastructure, logistics developments and renewable energy projects is expected to support future growth. The Board remains committed to delivering sustainable, profitable growth whilst maintaining the highest standards of safety, quality, environmental responsibility and customer service.

Key performance indicators

The directors monitor the performance of the company by reference to the following KPIs:

	2026	2025
Gross profit as percentage of sales	32	24
Net profit as a percentage of sales	26	12

Results and performance

The results of the company for the year, as set out in the statement of income and retained earnings, are summarised below:

	2026	2025
	£	£
Profit before taxation	3,490,134	1,288,388

This report was approved by the board of directors on 7 August 2026 and signed on behalf of the board by:

Mrs L Roberts

Director

Registered office:

Gladstone House

373 Haydn Road

Sherwood

Nottingham

NG5 1DZ

P J Towey Construction Limited

Directors' Report

Year ended 31 January 2026

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

Directors

The directors who served the company during the year were as follows:

Mr P Towey Jnr
Mr M Towey
Mrs L Roberts

Dividends

Particulars of recommended dividends are detailed in note 12 to the financial statements.

Future developments

The government's aim to build more houses means that the property market is expected to remain robust, but labour, material and energy cost pressures will continue to impact profitability. Future contracts are robust, with some extending over two years. Current global events are impacting the cost of fuel and materials, the company reviews it's pricing regularly and ensures that increases are factored in.

Financial instruments

The company's significant cash position ensures that risks imposed by prices, credit and liquidity are minimised.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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 judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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. Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.

This report was approved by the board of directors on 7 August 2026 and signed on behalf of the board by:

Mrs L Roberts

Director

Registered office:

Gladstone House

373 Haydn Road

Sherwood

Nottingham

NG5 1DZ

P J Towey Construction Limited

Independent Auditor's Report to the Members of P J Towey Construction Limited

Year ended 31 January 2026

Opinion

We have audited the financial statements of P J Towey Construction Limited (the 'company') for the year ended 31 January 2026 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and the related notes, 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 FRS 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 January 2026 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 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.

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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report 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 directors' 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 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 directors' responsibilities statement, 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 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 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.

Auditor's 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 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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Extent to which the audit was considered capable of detecting irregularities, including fraud: We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our audit opinion. Identifying and assessing potential risks related to irregularities in identifying and assessing risks of material misstatement. In respect of irregularities, including fraud and non-compliance with laws and regulations, we have considered the following: - the nature of the business and its industry, management and ownership structure. - results of our enquiries of management and those charged with governance regarding their own identification and assessment of the risks of irregularities. - any matters we identified having documented and tested the company's policies and procedures including compliance with laws and regulations, internal controls and also from discussion within the audit engagement team and associated internal specialists regarding how and where fraud might occur and whether there were 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 following areas: posting of unusual journals, timing of recognition of income and the valuation of stocks. 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 were Companies Act 2006 (UK), employment law, health and safety, pensions and tax legislations. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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 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.

Russell Eley FCCA

(Senior Statutory Auditor)

For and on behalf of

Xeinadin Audit Limited

Chartered Accountants & statutory auditor

Maple House

Level 5A

149 Tottenham Court Road

London

W1T 7NF

7 August 2026

P J Towey Construction Limited

Statement of Income and Retained Earnings

Year ended 31 January 2026

		2026	2025
Note		£	£
Turnover	4	13,564,549	10,362,044

Cost of sales	9,178,808	7,884,363
	-------------	-------------
Gross profit	4,385,741	2,477,681

Administrative expenses		923,000	1,194,646
		------------	------------
Operating profit	5	3,462,741	1,283,035

Other interest receivable and similar income	9	28,693	5,353
Interest payable and similar expenses	10	1,300	–
		------------	------------
Profit before taxation		3,490,134	1,288,388

Tax on profit	11	878,900	333,320
		------------	------------
Profit for the financial year and total comprehensive income		2,611,234	955,068
		------------	------------

Dividends paid and payable	12	( 1,000,000)	–

Retained earnings at the start of the year	6,277,883	5,322,815
	------------	------------
Retained earnings at the end of the year	7,889,117	6,277,883
	------------	------------

All the activities of the company are from continuing operations.

P J Towey Construction Limited

Statement of Financial Position

31 January 2026

	2026		2025
Note	£	£	£

Fixed assets

Tangible assets	14		52,915	59,833

Current assets

Debtors	15	5,167,459	4,064,514
Investments	16	2,500,000	–
Cash at bank and in hand		2,140,716	4,032,868
		------------	------------
		9,808,175	8,097,382

Creditors: amounts falling due within one year	18	1,971,970		1,879,329
		------------		------------
Net current assets			7,836,205	6,218,053
			------------	------------
Total assets less current liabilities			7,889,120	6,277,886
			------------	------------
Net assets			7,889,120	6,277,886
			------------	------------

Capital and reserves

Called up share capital	21	3	3
Profit and loss account		7,889,117	6,277,883
		------------	------------
Shareholders funds		7,889,120	6,277,886
		------------	------------

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.

These financial statements were approved by the board of directors and authorised for issue on 7 August 2026 , and are signed on behalf of the board by:

Mrs L Roberts

Director

Company registration number: 05944396

P J Towey Construction Limited

Statement of Cash Flows

Year ended 31 January 2026

	2026	2025
Note	£	£

Cash flows from operating activities

Profit for the financial year	2,611,234	955,068

Adjustments for:
Depreciation of tangible assets	17,714	20,082
Other interest receivable and similar income	( 28,693)	( 5,353)
Interest payable and similar expenses	1,300	–
Loss on disposal of tangible assets	–	495,258
Tax on profit	867,270	444,731
Accrued (income)/expenses	( 49,327)	46,929

Changes in:
Trade and other debtors	( 1,102,945)	( 760,346)
Trade and other creditors	( 138,210)	514,741
	------------	------------
Cash generated from operations	2,178,343	1,711,110

Interest paid	( 1,300)	–
Interest received	28,693	5,353
Tax paid	( 587,092)	( 310,316)
	------------	------------
Net cash from operating activities	1,618,644	1,406,147
	------------	------------

Cash flows from investing activities

Purchase of tangible assets	( 10,796)	( 12,650)
Purchases of other investments	( 2,500,000)	–
	------------	------------
Net cash used in investing activities	( 2,510,796)	( 12,650)
	------------	------------

Cash flows from financing activities

Dividends paid	( 1,000,000)	–
	------------	------------
Net cash used in financing activities	( 1,000,000)	–
	------------	------------

Net (decrease)/increase in cash and cash equivalents		( 1,892,152)	1,393,497
Cash and cash equivalents at beginning of year		4,032,868	2,639,371
		------------	------------
Cash and cash equivalents at end of year	17	2,140,716	4,032,868
		------------	------------

P J Towey Construction Limited

Notes to the Financial Statements

Year ended 31 January 2026

1. General information

The company is a private company limited by shares, registered in England & Wales. The address of the registered office is Gladstone House, 373 Haydn Road, Sherwood, Nottingham, NG5 1DZ.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Significant judgements The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: Recognition of revenue and profit is based on judgements made in respect of the profitability of a contract. Such judgements are arrived at through the use of estimates in relation to the costs and value of work performed to date and to be performed in bringing contracts to completion. These estimates are made by reference, surveys of progress against the construction programme, changes in work scope, the contractual terms under which the work is being performed, including the recoverability of any unagreed income from variations and the likely outcome of discussions on claims, costs incurred and external certification of the work performed. Key sources of estimation uncertainty Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: Depreciation charge is calculated based on estimates and assumptions on asset useful economic lives and expected residual values.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Goodwill

Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

	Goodwill	-	10% straight line

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Plant and machinery	-	25% reducing balance
Fixtures and fittings	-	15%-33% reducing balance
Motor vehicles	-	25% reducing balance

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Construction contracts

Where the outcome of construction contracts can be reliably estimated, contract revenue and contract costs are recognised by reference to the stage of completion of the contract activity as at the period end. Where the outcome of construction contracts cannot be estimated reliably, revenue is recognised to the extent of contract costs incurred that it is probable will be recoverable, and contract costs are recognised as an expense in the period in which they are incurred. The entity uses the percentage of completion method to determine the amounts to be recognised in the period. The stage of completion is measured by reference to the contract costs incurred up to the end of the reporting period as a percentage of total estimated costs for each contract. Costs incurred for work performed to date do not include costs relating to future activity, such as for materials or prepayments.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

4. Turnover

Turnover arises from:

	2026	2025
	£	£
Construction contracts	13,564,549	10,362,044
	-------------	-------------

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

5. Operating profit

Operating profit or loss is stated after charging:

	2026	2025
	£	£
Depreciation of tangible assets	17,714	20,082
Loss on disposal of tangible assets	–	495,258
	--------	---------

6. Auditor's remuneration

	2026	2025
	£	£
Fees payable for the audit of the financial statements	7,000	7,200
	-------	-------

7. Staff costs

The average number of persons employed by the company during the year, including the directors, amounted to:

	2026	2025
	No.	No.
Production staff	18	18
Administrative staff	2	2
Management staff	4	4
	----	----
	24	24
	----	----

The aggregate payroll costs incurred during the year, relating to the above, were:

	2026	2025
	£	£
Wages and salaries	885,901	900,714
Social security costs	148,346	107,086
Other pension costs	14,570	12,014
	------------	------------
	1,048,817	1,019,814
	------------	------------

8. Directors' remuneration

The directors' aggregate remuneration in respect of qualifying services was:

	2026	2025
	£	£
Remuneration	481,635	135,676
	---------	---------

Remuneration of the highest paid director in respect of qualifying services:

	2026	2025
	£	£
Aggregate remuneration	239,267	63,889
	---------	--------

9. Other interest receivable and similar income

	2026	2025
	£	£
Interest on cash and cash equivalents	27,869	–
Other interest receivable and similar income	824	5,353
	--------	-------
	28,693	5,353
	--------	-------

10. Interest payable and similar expenses

	2026	2025
	£	£
Other interest payable and similar charges	1,300	–
	-------	----

11. Tax on profit

Major components of tax expense

	2026	2025
	£	£

Current tax:

UK current tax expense	867,270	444,731

Deferred tax:

Origination and reversal of timing differences	11,630	( 111,411)
	---------	---------
Tax on profit	878,900	333,320
	---------	---------

Reconciliation of tax expense

The tax assessed on the profit on ordinary activities for the year is higher than (2025: higher than) the standard rate of corporation tax in the UK of 25 % (2025: 25 %).

	2026	2025
	£	£
Profit on ordinary activities before taxation	3,490,134	1,288,388
	------------	------------
Profit on ordinary activities by rate of tax	872,534	322,097
Effect of expenses not deductible for tax purposes	6,366	11,223
	------------	------------
Tax on profit	878,900	333,320
	------------	------------

12. Dividends

	2026	2025
	£	£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )	1,000,000	–
	------------	----

13. Intangible assets

	Goodwill
	£
Cost
At 1 February 2025 and 31 January 2026	126,000
	---------
Amortisation
At 1 February 2025 and 31 January 2026	126,000
	---------
Carrying amount
At 31 January 2026	–
	---------
At 31 January 2025	–
	---------

14. Tangible assets

	Plant and machinery	Fixtures and fittings	Motor vehicles	Total
	£	£	£	£
Cost
At 1 February 2025	173,690	29,072	8,300	211,062
Additions	10,796	–	–	10,796
	---------	--------	-------	---------
At 31 January 2026	184,486	29,072	8,300	221,858
	---------	--------	-------	---------
Depreciation
At 1 February 2025	119,585	26,846	4,798	151,229
Charge for the year	16,231	607	876	17,714
	---------	--------	-------	---------
At 31 January 2026	135,816	27,453	5,674	168,943
	---------	--------	-------	---------
Carrying amount
At 31 January 2026	48,670	1,619	2,626	52,915
	---------	--------	-------	---------
At 31 January 2025	54,105	2,226	3,502	59,833
	---------	--------	-------	---------

15. Debtors

	2026	2025
	£	£
Trade debtors	1,115,144	1,030,910
Amounts owed by group undertakings	2,009,306	1,444,829
Amounts owed by customers on construction contracts	1,010,981	568,915
Deferred tax asset	192,579	204,209
Prepayments and accrued income	19,095	18,745
Directors loan account	512,892	475,477
Other debtors	307,462	321,429
	------------	------------
	5,167,459	4,064,514
	------------	------------

The debtors above include the following amounts falling due after more than one year:

	2026	2025
	£	£
Trade debtors	595,260	452,781
Deferred tax asset	192,579	204,209
	---------	---------
	787,839	656,990
	---------	---------

16. Investments

	2026	2025
	£	£
Short-term deposits	2,500,000	–
	------------	----

17. Cash and cash equivalents

Cash and cash equivalents comprise the following:

	2026	2025
	£	£
Cash at bank and in hand	2,140,716	4,032,868
Short-term deposits	2,500,000	–
	------------	------------
	4,640,716	4,032,868
	------------	------------

18. Creditors: amounts falling due within one year

	2026	2025
	£	£
Trade creditors	1,326,966	1,495,800
Accruals and deferred income	51,768	101,095
Corporation tax	510,449	230,271
Social security and other taxes	55,961	39,010
Other creditors	26,826	13,153
	------------	------------
	1,971,970	1,879,329
	------------	------------

19. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	2026	2025
	£	£
Included in debtors (note 15)	192,579	204,209
	---------	---------

The deferred tax account consists of the tax effect of timing differences in respect of:

	2026	2025
	£	£
Capital allowances still to claim	(192,579)	(204,209)
	---------	---------

20. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 14,570 (2025: £ 12,014 ).

21. Called up share capital

Issued, called up and fully paid

	2026		2025
	No.	£	No.	£
Ordinary shares of £ 1 each	3	3	3	3
	----	----	----	----

Ordinary shares have full rights to voting, capital and receipt of dividends.

22. Analysis of changes in net debt

	At 1 Feb 2025	Cash flows	At 31 Jan 2026
	£	£	£
Cash at bank and in hand	4,032,868	(1,892,152)	2,140,716
Current asset investments	–	2,500,000	2,500,000
	------------	------------	------------
	4,032,868	607,848	4,640,716
	------------	------------	------------

23. Directors' advances, credits and guarantees

During the year the directors entered into the following advances and credits with the company:

	2026
	Balance brought forward	Advances/ (credits) to the directors	Amounts repaid	Balance outstanding
	£	£	£	£
Mr P Towey Jnr	169,950	221,807	( 169,908)	221,849
Mr M Towey	175,701	222,754	( 175,701)	222,754
Mrs L Roberts	129,826	157,331	( 218,868)	68,289
	---------	---------	---------	---------
	475,477	601,892	( 564,477)	512,892
	---------	---------	---------	---------

	2025
	Balance brought forward	Advances/ (credits) to the directors	Amounts repaid	Balance outstanding
	£	£	£	£
Mr P Towey Jnr	146,664	182,080	( 158,794)	169,950
Mr M Towey	140,686	174,701	( 139,686)	175,701
Mrs L Roberts	180,685	129,826	( 180,685)	129,826
	---------	---------	---------	---------
	468,035	486,607	( 479,165)	475,477
	---------	---------	---------	---------

The loans are repayable upon demand and no interest is paid to or charged by the company.

P J Towey Construction Limited

Notes to the Financial Statements (continued)

Year ended 31 January 2026

24. Controlling party

The company is controlled by PJ Towey Holdings Limited, a company registered in England & Wales, its registered office is Lyndhurst, 1 Cranmer Street, Long Eaton, Nottingham, NG10 1NJ.