The directors present the strategic report for the Dearneside (Holdings) Limited Group for the year ended 31 March 2026.
The Group specialises in architectural metalwork and general steel fabrication, operating across the Residential, Leisure, Retail, and Commercial sectors. The Group also invest in Commercial Properties let on long FRI leases to tenants from a variety of sectors.
During the year, material prices continued to stabilise following the significant increases experienced in previous periods. Gross profit margin has improved to 30.7% compared to 26.2% in the prior year. The Group continues to focus on maintaining margins and actively seeks opportunities to improve them through ongoing review processes.
Turnover for the year has reduced to £12.8m from £16.8m for the previous year. This reduction was driven primarily by delays associated with the Building Safety Act and the associated Gateway 2 approval process, which has created a significant bottleneck in the release and commencement of new projects. The slowdown in regulatory approvals delayed the commencement of several contracts during the year and consequently reduced revenue recognised in the year end 31 March 2026.
Despite a 24% reduction in turnover, operating profit remained strong at £2.2 million down from £2.3 million for 2025. The Directors are pleased with this performance, reflecting the business's resilience in managing external challenges while maintaining a robust level of profitability. They remain confident that results for the forthcoming financial year will be equally strong, supported by continued strategic planning and market positioning.
The Group views its relationships with supply chain partners, clients, and employees as critical to sustaining long-term growth. While the transition under the Building Safety Act has created short-term challenges, particularly through the Gateway 2 approval stage, the Directors are confident that once this regulatory process becomes more streamlined, it will provide greater clarity and consistency in the sector. To mitigate the current delays, the Group has adapted its approach by engaging more proactively at the design stage, collaborating closely with clients and consultants, to ensure projects are fully aligned with Gateway 2 requirements. This early engagement is designed to reduce approval risk, improve programme certainty, and ensure readiness as the regulatory framework settles.
In terms of secured orders, although the Gateway 2 process delayed some projects in the year, the Group still ended the year with approximately £20 million of secured orders. Since the balance sheet date, an additional £10m of projects have been secured, with numerous further high-value opportunities currently being priced.
The Directors continue to monitor the Marketplace which, as always, remains competitive. The Directors also ensure that they are aware of the Economic outlook to enable the Group to remain in a strong Position in the Marketplace. The Group benefits from collaborative working with its existing clients together with seeking new clients to continue to build upon its commercial relationships for the benefit of the business.
The Group continues to measure its results in line with strategic growth plans and remains pleased at the continual growth and strength of the organisation, with Group net assets increasing to £15.5m at the reporting date up from £13.9m following further expansion during the financial year to the company's investment property portfolio, acquiring additional Properties for c£4.5m supported by additional bank funding.
The Group operates in the Construction Sector and the Directors and Senior Management are very much aware of the cyclical nature of the Sector and as such continually monitor the marketplace and key risks.
Directors together with the senior Management continually assess Internal controls to manage and mitigate key risks, identified as:
Quality – the Group has many accreditations including CE Marking under the Construction Products Regulations 2011.
Competitive Pricing – The Group continues to be very well positioned in the marketplace being successful on numerous prestigious developments across many sectors. It maintains a secured order book in excess of £20M, being in excess of One Years Turnover.
Safety – The Group adheres to all latest Health and Safety legislation and proactively promotes safe working practices throughout its operations. The Group is once again pleased to report it has had no reportable incidents in the period under review nor up to the date of signing these Financial Statements.
Liquidity – Robust controls are maintained and monitored to ensure the Group has sufficient resources to meet both its short and long term liabilities. The Group maintains substantial cash resources to be able to deal with any unforeseen issues that may arise. In addition, the Group also has access to immediately available funds in its Parent Company should the need arise.
The director's and senior management also assess external risks to ensure the Group is able to adapt to changes in the marketplace.
The group continues to respond to operational challenges affecting its manufacturing facilities and site installation activities. Its experienced management team and flexible operating structure enable it to assess emerging issues and implement appropriate measures promptly. The Group also maintains robust financial controls and significant liquid resources to withstand a short- or medium-term reduction in trading or cashflow. No such material reduction had arisen at the date of this report.
Credit Risk
All Clients of Dearneside Fabrications undergo a credit review prior to new Contracts being placed, and manages its risk via appropriate levels of credit insurances by accredited Credit Underwriters and constant monitoring of its debtor book and work in Progress Levels.
Liquidity Risk
The Directors closely monitor its liquid resources of the Group to ensure it can meet its ongoing obligations as and when they fall due and has sufficient available resources to withstand any short or medium term reduction in Cashflow should this arise. The Group holds c£4m of cash reserves at the Balance Sheet date
The Directors closely monitor Turnover, Gross Profit and Forward order Book levels, these are seen as key Financial Performance Indicators.
On behalf of the board
The directors present their annual report and financial statements of the Company and the Group for the year ended 31 March 2026.
The results of the Group for the year are set out on page 9.
Ordinary dividends were paid amounting to £240,000. The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
United Kingdom company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have elected to prepare the group and parent company 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 parent company, and of 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 judgements and accounting estimates that are reasonable and prudent;
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and parent company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent 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 group and parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
We have audited the financial statements of Dearneside (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2026 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
Conclusions relating to going concern
Other information
Opinions on other matters prescribed by the Companies Act 2006
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 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 parent company or to cease operations, or have no realistic alternative but to do so.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
- Considering the nature of the industry and sector and the business performance.
- Enquiry of management, and those charged with governance.
- Reviewing minutes of meetings of those charged with governance.
- Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
There are inherent limitations in our audit procedures including those noted above, The more removed that laws and regulations are from the financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error and as they may involve deliberate concealment of collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,668,878 (2025 - £687,184 profit).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
Dearneside (Holdings) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is, Trafalgar Works, Wallace Road, Sheffield, S3 9SR.
The group consists of Dearneside (Holdings) Limited and all of its subsidiaries.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The consolidated group financial statements consist of the financial statements of the parent company Dearneside (Holdings) Limited together with all entities controlled by the parent company (its subsidiaries).
All financial statements are made up to 31 March 2026. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
The nature of the Group's underlying business is such that there can be considerable unpredictable variation in the timing of cash inflows and the economic conditions during the period of these accounts have created some uncertainty in the market, but the directors have reviewed the Group's forecasts and projections and have considered the effect of possible changes in trading performance, and level of cash balances which totalled £4.12m. On the basis of these projections the directors consider that the Group has sufficient financial resources.
After making enquiries, the directors have a reasonable expectation that the Group has adequate resources to continue operations in the future, at least up to and beyond the current projections. Accordingly, they continue to adopt the going concern basis in preparing the annual report and financial statements.
Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.
When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
When the group acts as a lessor, a lease is classified as a finance lease whenever it transfers substantially all the risks and rewards of ownership of the underlying asset to the lessee, either at the end of the lease term or for the major part of the economic life of the asset. All other leases are classified as operating leases. If an arrangement contains both lease and non-lease components, the group allocates the consideration in the contract to the two elements.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The key estimates included in the consolidated group financial statements for the year ending 31 March 2026 are in respect of the carrying value of land and buildings, investment properties, work in progress provisions and deferred income . However, the directors believe that no further adjustments to the respective carrying values of these balances are required at 31 March 2026.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
During the year ended 31 March 2025, the company partially reversed a provision for impairment against a loan due from a connected company in which the directors are shareholders.
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
Included within tangible fixed assets are assets held under finance leases or hire purchase contracts, as follows:
Freehold land and buildings of the Group and Company with a carrying amount of £2,191,260 (2025 - £1,675,000) have been pledged to secure borrowings of the company.
Land and buildings of the Group and Company with a carrying amount of £2,191,260 were revalued in June 2026 by Messrs SMC Brownhill Vickers, independent valuers not connected with the company, on an open market value basis and in accordance with UKGAAP. The directors consider that the valuation represents a true reflection of the value of the property at 31 March 2026.
The land and buildings are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
Investment properties of the Group and Company b/fwd at 1 April 2025 are included at market value in accordance with valuation reports dated May and June 2025 undertaken by Messrs SMC Brownhill Vickers, independent valuers not connected with the company.
Investment properties acquired by the Group and Company during the year end 31 March 2026 are included at a cost of £5,618,100 for the Group and £4,597,713 for the company respectively.
The valuations are based on market value. The valuations conform to UK Valuation Standards and were based on recent market transactions on an arm's length basis for similar properties.
The directors consider that the carrying value of all investment properties remain a true reflection of their fair value at 31 March 2026 based on current rental yields received compared to rental yields when the properties were revalued.
Investments are valued at cost less provision for impairment.
Investments b/fwd from 31 March 2025 of £8,260,916 relates to shares in the company's wholly owned subsidiary undertaking, Dearneside Fabrications Limited which was acquired by a share for share exchange and is valued at net book value of net assets acquired. The directors have reviewed this valuation and believe it remains fair.
On 27 March 2026 the company acquired 100% of the issued share capital of PJG Holdings Limited for £100.
Details of the company's subsidiaries at 31 March 2026 are as follows:
Group trade debtors falling due under one year includes £2,245,494 (2025 - £2,620,268) in respect of amounts due from customers for contract work.
Group trade debtors falling due over one year are in respect of amounts due from customers for contract work.
Bank loan liabilities are secured against the property to which they relate in addition to a fixed and floating charge over all assets of the group.
Finance lease liabilities are secured against the assets to which they relate.
Bank loan liabilities are secured against the property to which they relate in addition to a fixed and floating charge over all assets of the group.
Finance lease liabilities are secured against the assets to which they relate.
The bank loans are secured against the property to which they relate in addition to a fixed and floating charge over all assets of the Group.
Finance lease payments represent rentals payable by the group for two motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
The following are the major deferred tax liabilities and assets recognised by the group and company:
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
The Group profit and loss reserves represents the cumulative profits and losses of the parent entity and the post acquisition cumulative profits and losses of its subsidiary undertakings.
The company profit and loss reserves represents the cumulative profits and losses.
The company acquired 100% of the issued ordinary share capital of Dearneside Fabrications Limited by a share for share exchange in August 2020. The Group merger reserve represents the fair value of the net assets of Dearneside Fabrications Limited on acquisition.
The members of the Group, Dearneside (Holdings) Limited and Dearneside Fabrications Limited have provided a cross guarantee and debenture to Barclays Bank PLC in respect of borrowings from Barclays Bank PLC.
At 31st March 2026 the total borrowings owed by the Group to Barclays Bank PLC amounted £6,496,085 (2025 £2,181,185).
At the reporting end date the Group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The Group owns 9 investment properties (2025 - 7) for rental purposes, of which the Company owns 8 (2025 - 7). However, 2 are rented within the Group. The leases are all for varying terms up to 10 years. Some of the operating lease contracts contain break and market review clauses in the event that the lessee exercises its option to renew.
At the reporting end date the group had contracted with tenants for the following minimum lease payments:
Subsequent to the year end, the Group acquired an additional investment property for consideration of £1,236,000. The acquisition completed after the reporting date and, accordingly, no adjustment has been made to the amounts recognised in these financial statements.
The directors consider this transaction to be a non-adjusting event after the reporting date as defined by FRS 102. The investment property will form part of the company's property investment portfolio and will be recognised in the financial statements for the year ending 31 March 2027.
During the year ended 31 March 2026 the Group paid rent of £60,000 (2025 - £60,000) to the SIPP of a director. The rent is calculated at market value. Included in lessee operating lease commitments payable at 31 March 2026 is £420,000 (2025 - £480,000) in respect of rents payable to the SIPP. (See note 28).
Within other debtors at 31 March 2026 are amounts due to the Group of £960,000 (2025 - £860,000) from connected Companies in which one of the directors is a shareholder. Where agreed, interest was being charged at what the directors consider to be a market rate, with interest received in the year ending 31 March 2026 of £7,846 (2025 - £24,120).
During the year the company released part of a provision of £Nil (2025 - £28,411) against amounts owed by a connected company in which the directors are shareholders.
The company received rents of £63,569 (2025 - £146,667) from a connected company in which the directors are shareholders.
During the year the company sold an investment property to a connected company in which the directors are shareholders. The property was sold for consideration of £2,000,000 (2025 - £Nil) and the sale was undertaken on commercial terms.
The company has taken advantage of the exemption under FRS102 section 33.1A from disclosing transactions with group companies which are eliminated on consolidation, where the consolidated financial statements are prepared.
Dividends totalling £240,000 (2025 - £575,000) were paid in the year in respect of shares held by the company's directors.