P J Towey Holdings Limited Group accounts (Group and Company)

COMPANY REGISTRATION NUMBER: 08631107

P J Towey Holdings Limited

Financial Statements

31 January 2026

P J Towey Holdings 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

Consolidated statement of income and retained earnings	12

Company statement of income and retained earnings	13

Consolidated statement of financial position	14

Company statement of financial position	15

Consolidated statement of cash flows	16

Notes to the financial statements	17

P J Towey Holdings Limited

Officers and Professional Advisers

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

Registered office	Lyndhurst
	1 Cranmer Street
	Long Eaton
	Nottingham
	NG10 1NJ

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

P J Towey Holdings Limited

Strategic Report

Year ended 31 January 2026

Review of business

The Company is a parent company of a group specialising in groundworks, infrastructure, house building, and civil engineering services, primarily serving residential developers throughout the Midlands and North of England. Based in the East Midlands, the trading companies within the group have 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. Principal Activities The group'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 -Construction of residential developments 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 group 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. -Finishing and selling the remaining properties on the group's housing development 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 group'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 group's strategy is built around five key objectives: 1. Sustainable Growth The group 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.-Further residential property developments Investment in bid management and business development activities will support these objectives. 2. Operational Excellence The group 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 group 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 group seeks to minimise disruption and maximise positive social value through community engagement, local employment, and responsible working practices. Financial Position The group 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 group is well positioned to capitalise on future opportunities while managing market uncertainty. Outlook Whilst economic conditions remain challenging, the group 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	21
Operating profit as a percentage of sales	26	11

Results and performance

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

	2026	2025
	£	£
Profit before taxation	3,958,970	1,406,350

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:

Lyndhurst

1 Cranmer Street

Long Eaton

Nottingham

NG10 1NJ

P J Towey Holdings Limited

Directors' Report

Year ended 31 January 2026

The directors present their report and the financial statements of the group 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 10 to the financial statements.

Future developments

The removal of the stamp duty threshold for property sales with a value less than £500,000 initially had a dampening effect on the property market. 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. Relative interest rate stability is expected to bolster the housing market in the upcoming period. Costs are affected by volatility of fuel costs but there is the expectation that these will settle in the mid term. The group has secured a number of new sites on which work has now commenced and these are expected to realise a favourable yield. Future contracts extend to a period over two years, giving the group a solid base of work for the upcoming period.

Financial instruments

The group'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 group and the company and the profit or loss of the group 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 group and 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 group and the company's auditor is aware of that information.

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:

Lyndhurst

1 Cranmer Street

Long Eaton

Nottingham

NG10 1NJ

P J Towey Holdings Limited

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

Year ended 31 January 2026

Opinion

We have audited the financial statements of P J Towey Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2026 which comprise the consolidated statement of income and retained earnings, company statement of income and retained earnings, consolidated statement of financial position, company statement of financial position, consolidated 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 group's and of the parent company's affairs as at 31 January 2026 and of the group's 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 group 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 group's or the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

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 group and the parent 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or - the parent company 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 group's and the parent 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 group or the parent 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 group's 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 group's or the parent 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 group or the parent 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. - Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. 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 auditors report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Russell Eley FCCA

(Senior Statutory Auditor)

For and on behalf of

Xeinadin Audit Limited

Accountants & statutory auditor

Maple House

Level 5A

149 Tottenham Court Road

London

W1T 7NF

7 August 2026

P J Towey Holdings Limited

Consolidated Statement of Income and Retained Earnings

Year ended 31 January 2026

		2026	2025
Note		£	£
Turnover	4	14,412,876	12,319,564

Cost of sales	9,720,626	9,719,032
	-------------	-------------
Gross profit	4,692,250	2,600,532

Administrative expenses		939,297	1,208,533
Other operating income		15,456	12,660
		------------	------------
Operating profit	5	3,768,409	1,404,659

Other interest receivable and similar income	191,861	5,385
Interest payable and similar expenses	1,300	3,694
	------------	------------
Profit before taxation	3,958,970	1,406,350

Tax on profit	9	996,109	362,080
		------------	------------
Profit for the financial year and total comprehensive income		2,962,861	1,044,270
		------------	------------

Dividends paid and payable	10	( 564,477)	( 467,035)

Retained earnings at the start of the year	15,519,724	14,942,490
	-------------	-------------
Retained earnings at the end of the year	17,918,108	15,519,725
	-------------	-------------

All the activities of the group are from continuing operations.

P J Towey Holdings Limited

Company Statement of Income and Retained Earnings

Year ended 31 January 2026

		2026	2025
Note		£	£
Profit for the financial year and total comprehensive income		1,176,553	1,542,309
Dividends paid and payable	10	( 564,477)	( 467,035)

Retained earnings at the start of the year	8,797,488	7,722,214
	------------	------------
Retained earnings at the end of the year	9,409,564	8,797,488
	------------	------------

P J Towey Holdings Limited

Consolidated Statement of Financial Position

31 January 2026

	2026	2025
Note	£	£

Fixed assets

Tangible assets	12	2,834,248		2,032,890

Current assets

Stocks	14	2,305,920	2,215,039
Debtors	15	3,162,707	2,631,745
Investments	16	6,000,000	–
Cash at bank and in hand		5,932,366	10,736,687
		-------------	-------------
		17,400,993	15,583,471

Creditors: Amounts falling due within one year	18	2,317,130	2,096,633
		-------------	-------------
Net current assets		15,083,863		13,486,838
		-------------		-------------
Total assets less current liabilities		17,918,111		15,519,728
		-------------		-------------
Net assets		17,918,111		15,519,728
		-------------		-------------

Capital and reserves

Called up share capital	21	3	3
Profit and loss account		17,918,108	15,519,725
		-------------	-------------
Shareholders funds		17,918,111	15,519,728
		-------------	-------------

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: 08631107

P J Towey Holdings Limited

Company Statement of Financial Position

31 January 2026

	2026	2025
Note	£	£

Fixed assets

Tangible assets	12	2,469,833	1,661,557
Investments	13	6	6
		------------	------------
		2,469,839	1,661,563

Current assets

Stocks	14	465,562	464,938
Debtors	15	2,229,289	2,222,387
Investments	16	2,500,000	–
Cash at bank and in hand		2,921,025	5,015,428
		------------	------------
		8,115,876	7,702,753

Creditors: Amounts falling due within one year	18	1,176,148	566,825
		------------	------------
Net current assets		6,939,728		7,135,928
		------------		------------
Total assets less current liabilities		9,409,567		8,797,491
		------------		------------
Net assets		9,409,567		8,797,491
		------------		------------

Capital and reserves

Called up share capital	21	3	3
Profit and loss account		9,409,564	8,797,488
		------------	------------
Shareholders funds		9,409,567	8,797,491
		------------	------------

The profit for the financial year of the parent company was £ 1,176,553 (2025: £ 1,542,309 ).

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: 08631107

P J Towey Holdings Limited

Consolidated Statement of Cash Flows

Year ended 31 January 2026

	2026	2025
Note	£	£

Cash flows from operating activities

Profit for the financial year	2,962,861	1,044,270

Adjustments for:
Depreciation of tangible assets	17,714	20,082
Other interest receivable and similar income	( 191,861)	( 5,385)
Interest payable and similar expenses	1,300	3,694
Loss on disposal of tangible assets	–	495,258
Tax on profit	984,479	362,080
Accrued income	( 160,947)	( 122,159)

Changes in:
Stocks	( 90,881)	1,232,235
Trade and other debtors	( 530,962)	( 145,120)
Trade and other creditors	( 23,454)	330,517
	------------	------------
Cash generated from operations	2,968,249	3,215,472

Interest paid	( 1,300)	( 3,694)
Interest received	191,861	5,385
Tax paid	( 579,582)	( 485,722)
	------------	------------
Net cash from operating activities	2,579,228	2,731,441
	------------	------------

Cash flows from investing activities

Purchase of tangible assets	( 819,072)	( 12,650)
Purchases of other investments	(6,000,000)	–
	------------	------------
Net cash used in investing activities	( 6,819,072)	( 12,650)
	------------	------------

Cash flows from financing activities

Dividends paid	( 564,477)	( 467,035)
	------------	------------
Net cash used in financing activities	( 564,477)	( 467,035)
	------------	------------

Net (decrease)/increase in cash and cash equivalents		( 4,804,321)	2,251,756
Cash and cash equivalents at beginning of year		10,736,687	8,484,931
		-------------	-------------
Cash and cash equivalents at end of year	17	5,932,366	10,736,687
		-------------	-------------

P J Towey Holdings 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 and Wales. The address of the registered office is Lyndhurst, 1 Cranmer Street, Long Eaton, Nottingham, NG10 1NJ.

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, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Disclosure exemptions

The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following reduced disclosures available under FRS 102:

(a) Disclosures in respect of each class of share capital have not been presented.

(b) No cash flow statement has been presented for the company.

(c) Disclosures in respect of financial instruments have not been presented.

(d) No disclosure has been given for the aggregate remuneration of key management personnel.

Consolidation

The financial statements consolidate the financial statements of P J Towey Holdings Limited and all of its subsidiary undertakings.

The results of subsidiaries acquired or disposed of during the year are included from or to the date that control passes.

The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account.

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 and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. Sales of new build properties Revenue is recognised at legal completion in respect of the total proceeds of building and development. Revenue is measured at the fair value of consideration received or receivable and represents the amounts receivable for the property, net of discounts and VAT. Rent received Rental income is recognised on a straight-line basis over the term of the lease.

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.

Operating leases

Lease income is recognised in profit or loss on a straight line basis over the lease term. The aggregate cost of lease incentives are recognised as a reduction to income over the lease term on a straight-line basis. Costs, including depreciation, incurred in earning the lease income are recognised as an expense. Any initial direct costs incurred in negotiating and arranging the operating lease are added to the carrying amount of the lease and recognised as an expense over the lease term on the same basis as the lease income.

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

Investment property

Investment property is initially recorded at cost, which includes purchase price and any directly attributable expenditure. Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss.

Investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.

Investments in associates

Investments in associates are accounted for using the equity method of accounting, whereby the investment is initially recognised at the transaction price and subsequently adjusted to reflect the group's share of the profit or loss, other comprehensive income and equity of the associate.

Investments in joint ventures

Investments in joint ventures are accounted for using the equity method of accounting, whereby the investment is initially recognised at the transaction price and subsequently adjusted to reflect the group's share of the profit or loss, other comprehensive income and equity of the joint venture.

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.

Stocks

Stocks are valued at the lower of cost and net realisable value. Cost of work in progress comprises direct materials, direct labour costs and those overheads that have been incurred in bringing the stock to their present location and condition. Land held for development, including land during development, is recorded at cost. When completed plots are sold a proportion of the land cost based on the size of the plot is expensed as a cost of sale.

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. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

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	13,440,532	10,362,044
Rent received	61,844	53,444
Sale of new build properties	910,500	1,904,076
	-------------	-------------
	14,412,876	12,319,564
	-------------	-------------

The whole of the turnover is attributable to the principal activity of the group 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	12,000	9,700
	--------	-------

7. Staff costs

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

	2026	2025
	No.	No.
Production staff	19	19
Administrative staff	2	2
Management staff	4	4
	----	----
	25	25
	----	----

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

	2026	2025
	£	£
Wages and salaries	934,529	946,061
Social security costs	154,719	112,088
Other pension costs	15,775	13,187
	------------	------------
	1,105,023	1,071,336
	------------	------------

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. Tax on profit

Major components of tax expense

	2026		2025
	£		£

Current tax:

UK current tax expense	984,479		473,491

Deferred tax:

Origination and reversal of timing differences	11,630	( 111,411)
	---------	---------
Tax on profit	996,109	362,080
	---------	---------

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	3,958,970	1,406,350
	------------	------------
Profit on ordinary activities by rate of tax	989,743	351,587
Effect of expenses not deductible for tax purposes	6,366	11,222
Effect of different UK tax rates on some earnings	–	(729)
	------------	------------
Tax on profit	996,109	362,080
	------------	------------

10. Dividends

	2026	2025
	£	£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )	564,477	467,035
	---------	---------

11. Intangible assets

Group	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 1 February 2025 and 31 January 2026	–
	---------
At 31 January 2025	–
	---------

The company has no intangible assets.

12. Tangible assets

Group	Freehold property	Plant and machinery	Fixtures and fittings	Motor vehicles	Total
	£	£	£	£	£
Cost
At 1 February 2025	1,973,057	173,690	29,072	8,300	2,184,119
Additions	808,276	10,796	–	–	819,072
	------------	---------	--------	-------	------------
At 31 January 2026	2,781,333	184,486	29,072	8,300	3,003,191
	------------	---------	--------	-------	------------
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	2,781,333	48,670	1,619	2,626	2,834,248
	------------	---------	--------	-------	------------
At 31 January 2025	1,973,057	54,105	2,226	3,502	2,032,890
	------------	---------	--------	-------	------------

Company	Freehold property
	£
Cost
At 1 February 2025	1,661,557
Additions	808,276
	------------
At 31 January 2026	2,469,833
	------------
Depreciation
At 1 February 2025 and 31 January 2026	–
	------------
Carrying amount
At 31 January 2026	2,469,833
	------------
At 31 January 2025	1,661,557
	------------

In the opinion of the directors the investment properties values have not significantly changed to the acquisition costs incurred.

13. Investments

The group has no investments.

Company	Shares in group undertakings
	£
Cost
At 1 February 2025 and 31 January 2026	6
	----
Impairment
At 1 February 2025 and 31 January 2026	–
	----

Carrying amount
At 1 February 2025 and 31 January 2026	6
	----
At 31 January 2025	6
	----

Subsidiaries, associates and other investments

Details of the investments in which the parent company has an interest of 20% or more are as follows:

	Registered office	Class of share	Percentage of shares held
Subsidiary undertakings
P J Towey Construction Limited	Gladstone House	Ordinary	100
	373 Haydn Road
	Sherwood
	Nottingham
	NG5 1DZ
Towey Homes Limited	Gladstone House	Ordinary	100
	373 Haydn Road
	Sherwood
	Nottingham
	NG5 1DZ

14. Stocks

	Group		Company
	2026	2025	2026	2025
	£	£	£	£
Raw materials and consumables	465,562	464,938	465,562	464,938
Work in progress	1,840,358	1,750,101	–	–
	------------	------------	---------	---------
	2,305,920	2,215,039	465,562	464,938
	------------	------------	---------	---------

15. Debtors

	Group		Company
	2026	2025	2026	2025
	£	£	£	£
Trade debtors	1,115,144	1,030,910	6,000	–
Amounts owed by group undertakings	–	–	2,220,875	2,220,875
Amounts owed by customers on construction contracts	1,010,981	568,915	–	–
Deferred tax asset	192,579	204,209	–	–
Prepayments and accrued income	21,839	20,545	2,414	1,512
Directors loan account	511,892	474,477	–	–
Other debtors	310,272	332,689	–	–
	------------	------------	------------	------------
	3,162,707	2,631,745	2,229,289	2,222,387
	------------	------------	------------	------------

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

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

16. Investments

	Group		Company
	2026	2025	2026	2025
	£	£	£	£
Short-term deposits	6,000,000	–	2,500,000	–
	------------	----	------------	----

17. Cash and cash equivalents

Cash and cash equivalents comprise the following:

	2026	2025
	£	£
Cash at bank and in hand	5,932,366	10,736,687
Short-term deposits	6,000,000	–
	-------------	-------------
	11,932,366	10,736,687
	-------------	-------------

18. Creditors: Amounts falling due within one year

	Group		Company
	2026	2025	2026	2025
	£	£	£	£
Trade creditors	1,524,978	1,578,757	–	660
Amounts owed to group undertakings	–	–	1,105,110	540,634
Accruals and deferred income	64,562	236,413	4,940	4,840
Corporation tax	627,658	222,761	58,851	13,554
Social security and other taxes	57,725	40,302	1,000	890
Director loan accounts	–	–	1,000	1,000
Other creditors	42,207	18,400	5,247	5,247
	------------	------------	------------	---------
	2,317,130	2,096,633	1,176,148	566,825
	------------	------------	------------	---------

19. Deferred tax

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

	Group		Company
	2026	2025	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:

	Group		Company
	2026	2025	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 £ 15,775 (2025: £ 13,187 ).

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	10,736,687	(4,804,321)	5,932,366
Current asset investments	–	6,000,000	6,000,000
	-------------	------------	-------------
	10,736,687	1,195,679	11,932,366
	-------------	------------	-------------

23. Directors' advances, credits and guarantees

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

	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	174,701	222,754	( 175,701)	221,754
Mrs L Roberts	129,826	157,331	( 218,868)	68,289
	---------	---------	---------	---------
	474,477	601,892	( 564,477)	511,892
	---------	---------	---------	---------

	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	139,686	174,701	( 139,686)	174,701
Mrs L Roberts	180,685	129,826	( 180,685)	129,826
	---------	---------	---------	---------
	467,035	486,607	( 479,165)	474,477
	---------	---------	---------	---------

P J Towey Holdings Limited

Notes to the Financial Statements (continued)

Year ended 31 January 2026

23. Directors' advances, credits and guarantees (continued)

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