REGISTERED NUMBER: 08077938 (England and Wales)

DANIEL CHARLES GROUP LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2025

Page

Company Information

1

Group Strategic Report

2

to

3

Report of the Directors

4

Report of the Independent Auditors

5

to

7

Consolidated Income Statement

8

Consolidated Other Comprehensive Income

9

Consolidated Statement of Financial Position

10

Company Statement of Financial Position

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Statement of Cash Flows

14

Notes to the Consolidated Statement of Cash Flows

15

Notes to the Consolidated Financial Statements

16

to

29

DIRECTORS:

D Ingall

Mrs C M Heath

Mrs J S Skelton

REGISTERED OFFICE:

Honeywood Barn

Honeyholes Lane

Dunholme

Lincoln

Lincolnshire

LN2 3SU

REGISTERED NUMBER:

08077938 (England and Wales)

SENIOR STATUTORY AUDITOR:

Sally-Anne Hurn FCA

AUDITORS:

Duncan & Toplis Audit Limited, Statutory Auditor

4 Henley Way

Doddington Road

Lincoln

Lincolnshire

LN6 3QR

The directors present their strategic report of the company and the group for the year ended 30 November 2025.

REVIEW OF BUSINESS

The results for the year and financial position of the company are as shown in the annexed financial statements.

2025

2024

2023

2022

2021

£

£

£

£

£

Turnover

25,679,888

29,231,505

28,289,217

28,054,422

22,418,918

Cost of sales

21,011,570

24,259,338

23,510,683

22,766,598

18,813,277

Gross Profit

4,668,318

4,972,167

4,778,534

5,287,464

3,605,641

Gross profit margin %

18.18

17.00

16.89

18,85

16.08

Profit on ordinary activities before taxation

636,492

1,335,121

853,323

2,062,178

1,449,154

% of profit on ordinary activities before taxation

2.48

4.57

2.93

7.35

6.46

The group traded well during the year, maintaining stable business levels supported by its strong reputation and long-standing customer relationships. Turnover reduced during the year, reflecting wider economic conditions and increased customer caution when progressing projects. Gross profit margin improved compared with the previous two years; however, profit on ordinary activities before taxation reduced, primarily as a result of the lower turnover.

Looking ahead to 2026 and beyond, the Directors remain positive about the company's prospects and expect the business to continue performing well, supported by its strong operational foundation and established reputation in the market. The company has an extremely strong forward workload with both existing and new customers, and the Directors are confident that turnover will return to previous levels.

The group's operations and assets are well diversified and as such the levels of operational and other risks are considered by the Directors to be acceptable. The group does not have any material exposure to any high-risk markets or geographical areas.

Position at the balance sheet date

The Directors consider the group to be in a strong financial position at the financial position date, with accumulated reserves of approximately £9.47 million.

Management remains mindful of the competitive environment in which the group operates and recognises the importance of maintaining tight control over working capital.

Borrowings and Risk Management

The group's principal financial instruments comprise bank balances, trade creditors and trade debtors. These instruments are primarily used to finance the group's operations and to support capital investment in plant and machinery. The group's approach to managing other risks applicable to the financial instruments minimised the risk to a level that the Directors consider acceptable.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers, regular monitoring of outstanding receivables, including ageing analysis and credit limits and prompt follow-up on overdue accounts.

Trade creditors liquidity risk is managed by ensuring sufficient cash reserves are available to meet amounts due by continuous monitoring of cashflow and working capital requirements.

PRINCIPAL RISKS AND UNCERTAINTIES

The group is affected by a number of factors, the principal ones of which are:

- The group is exposed to the risk of negative developments in financial markets and the sectors in which it operates, either directly or through the impact on the group's bankers, suppliers or customers. These developments can result in recession, inflation, deflation, restrictions in the availability of credit, impact on demand from customers, problems in the supplier base, increases in financing costs or in the cost of utilities and raw materials. Such developments might increase operating costs, reduce revenues, lower asset values or result in the businesses being unable to meet in full its strategic objectives.

- The group operates in a competitive market. Inability to compete effectively on key factors such as price, product specification, quality and customer service can have an adverse effect on demand and profitability.

To manage and reduce the impact of these risks, the group has implemented the following measures:

- An organisational structure with clearly defined lines of responsibility and delegation of authority. There are established policies and procedures for the setting of corporate strategies; financial planning and budgeting; for information and reporting systems; for systems of operational and financial internal control; for assessment of risk; and for monitoring operations and performance.

- Management and staff who engage closely with customers and suppliers to ensure efficiency, responsiveness, and innovation. These strong working relationships and open communication channels help mitigate operational risk and promote stability.

- A recruitment and selection process to ensure employees are experienced and competent in their work. Ongoing training programs support staff in delivering high standards and adapting to customer needs.

FUTURE DEVELOPMENTS

The group's strategy is to pursue continued organic growth by leveraging its existing business model. The management team remains focused on enhancing operational efficiency, maintaining high service standards and strengthening relationships with existing clients. Investment will continue in key areas such as staff development, machinery, technology, and process improvement to support sustainable growth.

ON BEHALF OF THE BOARD:

D Ingall - Director

26 August 2026

The directors present their report with the financial statements of the company and the group for the year ended 30 November 2025.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of land surveying, construction, quarrying of limestone and the supply of aggregates.

DIVIDENDS

The total distribution of dividends for the year ended 30 November 2025 will be £Nil.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 December 2024 to the date of this report.

D Ingall

Mrs C M Heath

Mrs J S Skelton

Other changes in directors holding office are as follows:

P J Sidebottom ceased to be a director after 30 November 2025 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group 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;

-	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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

ON BEHALF OF THE BOARD:

D Ingall - Director

26 August 2026

Opinion

We have audited the financial statements of Daniel Charles Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2025 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 30 November 2025 and of the group's profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 and 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

-	adequate accounting records have not been kept 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 Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the 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.

Auditors' responsibilities for the audit of the financial statements

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

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

We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit.

The potential impact of different laws and regulations varies considerably. Firstly the group is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statement audit. This included the identification and testing of unusual material journal entries and challenging management on key estimates, assumptions and judgements made in the preparation of the financial statements. These areas of uncertainty are disclosed in the accounting policies.

Secondly the group is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Health and Safety regulations and Employment laws.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection. This inspection included a review of the health and safety audits conducted within the year for any evidence of non-compliance, in addition to an assessment of the company's employment and health and safety controls. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions or the override of internal controls.

We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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

Use of our report

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

Sally-Anne Hurn FCA (Senior Statutory Auditor)

for and on behalf of Duncan & Toplis Audit Limited, Statutory Auditor

4 Henley Way

Doddington Road

Lincoln

Lincolnshire

LN6 3QR

26 August 2026

TURNOVER

3

25,679,888

29,231,505

Cost of sales

21,011,570

24,259,338

GROSS PROFIT

4,668,318

4,972,167

Administrative expenses

3,929,698

3,451,381

738,620

1,520,786

Other operating income

114,825

52,697

OPERATING PROFIT

5

853,445

1,573,483

Interest receivable and similar income

7

37,135

28,701

890,580

1,602,184

Interest payable and similar expenses

8

254,088

267,063

PROFIT BEFORE TAXATION

636,492

1,335,121

Tax on profit

9

241,974

356,190

PROFIT FOR THE FINANCIAL YEAR

394,518

978,931

Profit attributable to:

Owners of the parent

394,518

978,931

PROFIT FOR THE YEAR

394,518

978,931

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

394,518

978,931

Total comprehensive income attributable to:

Owners of the parent

394,518

978,931

FIXED ASSETS

Intangible assets

12

(56,103

)

(67,324

)

Tangible assets

13

10,842,019

10,414,990

Investments

14

-

-

10,785,916

10,347,666

CURRENT ASSETS

Stocks

15

491,887

359,379

Debtors

16

5,547,729

5,919,206

Cash at bank and in hand

1,924,284

2,791,912

7,963,900

9,070,497

CREDITORS

Amounts falling due within one year

17

5,235,465

6,734,296

NET CURRENT ASSETS

2,728,435

2,336,201

TOTAL ASSETS LESS CURRENT LIABILITIES

13,514,351

12,683,867

CREDITORS

Amounts falling due after more than one year

18

(2,339,445

)

(2,022,361

)

PROVISIONS FOR LIABILITIES

22

(1,702,339

)

(1,583,457

)

NET ASSETS

9,472,567

9,078,049

CAPITAL AND RESERVES

Called up share capital

23

1

1

Capital redemption reserve

24

1

1

Retained earnings

24

9,472,565

9,078,047

SHAREHOLDERS' FUNDS

9,472,567

9,078,049

The financial statements were approved by the Board of Directors and authorised for issue on 26 August 2026 and were signed on its behalf by:

D Ingall - Director

FIXED ASSETS

Intangible assets

12

-

-

Tangible assets

13

2,761,126

3,276,124

Investments

14

423,207

423,207

3,184,333

3,699,331

CURRENT ASSETS

Debtors

16

1,976,353

1,130,616

Cash at bank

166,769

73,030

2,143,122

1,203,646

CREDITORS

Amounts falling due within one year

17

1,866,965

1,065,747

NET CURRENT ASSETS

276,157

137,899

TOTAL ASSETS LESS CURRENT LIABILITIES

3,460,490

3,837,230

CREDITORS

Amounts falling due after more than one year

18

(392,387

)

(650,250

)

PROVISIONS FOR LIABILITIES

22

(243,266

)

(230,900

)

NET ASSETS

2,824,837

2,956,080

CAPITAL AND RESERVES

Called up share capital

23

1

1

Capital redemption reserve

24

1

1

Retained earnings

24

2,824,835

2,956,078

SHAREHOLDERS' FUNDS

2,824,837

2,956,080

Company's loss for the financial year

(131,243

)

(1,789,955

)

The financial statements were approved by the Board of Directors and authorised for issue on 26 August 2026 and were signed on its behalf by:

D Ingall - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 December 2023

1

8,195,371

1

8,195,373

Changes in equity

Dividends

-

(96,255

)

-

(96,255

)

Total comprehensive income

-

978,931

-

978,931

Balance at 30 November 2024

1

9,078,047

1

9,078,049

Changes in equity

Total comprehensive income

-

394,518

-

394,518

Balance at 30 November 2025

1

9,472,565

1

9,472,567

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 December 2023

1

4,842,288

1

4,842,290

Changes in equity

Total comprehensive income

-

(1,789,955

)

-

(1,789,955

)

Dividends

-

(96,255

)

-

(96,255

)

Balance at 30 November 2024

1

2,956,078

1

2,956,080

Changes in equity

Total comprehensive income

-

(131,243

)

-

(131,243

)

Balance at 30 November 2025

1

2,824,835

1

2,824,837

Cash flows from operating activities

Cash generated from operations

1

2,168,072

3,127,443

Interest paid

(27,316

)

-

Interest element of hire purchase payments paid

(226,772

)

(267,063

)

Tax paid

(95,103

)

29,115

Net cash from operating activities

1,818,881

2,889,495

Cash flows from investing activities

Purchase of tangible fixed assets

(946,791

)

(199,091

)

Sale of tangible fixed assets

304,591

475,383

Interest received

9,772

28,701

Net cash from investing activities

(632,428

)

304,993

Cash flows from financing activities

Loan repayments in year

(30,645

)

-

New loans in year

505,000

-

Capital repayments in year

(2,005,230

)

(2,211,785

)

Interest on DLA

-

(5,052

)

Amount withdrawn by directors

(482,678

)

(602,180

)

Capital introduced by directors

375,000

-

Loan to Daniel Charles Group EOT

(415,528

)

-

Equity dividends paid

-

(96,255

)

Net cash from financing activities

(2,054,081

)

(2,915,272

)

(Decrease)/increase in cash and cash equivalents

(867,628

)

279,216

Cash and cash equivalents at beginning of year

2

2,791,912

2,512,696

Cash and cash equivalents at end of year

2

1,924,284

2,791,912

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit before taxation

636,492

1,335,121

Depreciation charges

2,022,654

2,045,928

Profit on disposal of fixed assets

(103,523

)

(232,036

)

Deduction of depreciation on revaluation

(120,053

)

(267,880

)

Amortisation

(11,221

)

(11,221

)

Finance costs

254,088

267,063

Finance income

(37,135

)

(28,701

)

2,641,302

3,108,274

Increase in stocks

(132,508

)

(33,411

)

Decrease in trade and other debtors

922,149

144,761

Decrease in trade and other creditors

(1,262,871

)

(92,181

)

Cash generated from operations

2,168,072

3,127,443

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 30 November 2025

30.11.25

1.12.24

£

£

Cash and cash equivalents

1,924,284

2,791,912

Year ended 30 November 2024

30.11.24

1.12.23

£

£

Cash and cash equivalents

2,791,912

2,512,696

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1.12.24

Cash flow

changes

At 30.11.25

£

£

£

£

Net cash

Cash at bank

and in hand

2,791,912

(867,628

)

1,924,284

2,791,912

(867,628

)

1,924,284

Debt

Finance leases

(4,103,073

)

2,005,230

(1,583,909

)

(3,681,752

)

Debts falling due

within 1 year

-

(69,662

)

-

(69,662

)

Debts falling due

after 1 year

-

(404,693

)

-

(404,693

)

(4,103,073

)

1,530,875

(1,583,909

)

(4,156,107

)

Total

(1,311,161

)

663,247

(1,583,909

)

(2,231,823

)