REGISTERED NUMBER: 02448655 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE PERIOD 1 DECEMBER 2024 TO 31 MAY 2026

FOR

AMD ENVIRONMENTAL LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Notes to the Financial Statements

14

DIRECTORS:

J A King

M G Sullivan

D J Pearce

D B Peachey FCA

A Wilmot

REGISTERED OFFICE:

Jupiter House

Orbital One

Green Street, Green Road

Dartford

Kent

DA1 1QG

REGISTERED NUMBER:

02448655 (England and Wales)

AUDITORS:

Lewis Brownlee (Chichester) Limited

Statutory Auditors

Appledram Barns

Birdham Road

Chichester

West Sussex

PO20 7EQ

The directors present their strategic report for the period 1 December 2024 to 31 May 2026.

FAIR REVIEW OF BUSINESS

The directors are pleased to report on an important period of strategic development for the company. The accounting reference period was extended to 31 May 2026 to better reflect the timing of activity within the construction market.

Funding approvals and the release of a number of projects took longer than originally anticipated, resulting in an extended pre-construction phase. An 18-month reporting period therefore provides a more representative view of the associated pre-construction overheads and the investment made in preparing the business to deliver its developing pipeline.

During the period, the company experienced substantial growth in activity, with turnover increasing to £24.5m. However, the timing and stage of projects within the extended reporting period meant that a greater proportion of expenditure related to pre-construction, mobilisation and capability building, while the related project margins had not yet fully matured. Consequently, gross margin reduced and the company reported a profit before taxation of £171,202. The board considers that the reported result should be viewed in the context of the extended period, the timing of project delivery and the strategic investment made to support the company's broader market position.

The directors remain encouraged by the company's trading outlook. As at the date of approval of these financial statements, the company has secured over £28 million of contracted and committed revenue for the financial year ending 31 May 2027. This strong order book provides good visibility over future trading activity and reflects the continued demand for the company's services across its core markets. The directors believe the level of secured work places the business in a strong position to deliver a positive performance in the forthcoming financial year, whilst continuing to pursue additional opportunities for growth.

A significant feature of the period was the continued diversification of the customer base. The business has moved from reliance on a relatively small number of customers to working with a much wider range of clients and delivery partners. This is an important strategic development which reduces concentration risk and provides a broader platform for sustainable growth.

During the period, the company continued to invest in the future growth and geographical expansion of the business through the establishment of a new office in Huddersfield. This represents a strategic investment designed to broaden the company's operational reach, develop new workstreams and provide a platform from which to secure and deliver increased levels of work across the North of England. The investment has included the initial costs associated with establishing and operating the new office, together with the recruitment and additional overhead required to develop and support these new workstreams. These costs have been recognised within the current period accounts and therefore represent an investment ahead of anticipated revenue and profitability growth, the positive impact of which the company is already beginning to realise.

The company has also expanded the range of sectors in which it operates. Opportunities and projects now extend across public sector work, defence, Ministry of Justice, banking, care and other regulated or technically demanding environments. This wider sector coverage strengthens the resilience of the business by reducing dependence on any one market and allows the company to apply its specialist Mechanical, Electrical and Plumbing capabilities across a more diverse portfolio.

Throughout the period, the company continued to strengthen its people, capabilities and product and service offering. Average employee numbers increased from 45 to 53, including an increase in project delivery personnel from 29 to 38. The business has continued to invest in recruitment, technical expertise, operational capacity, systems and its supply chain so that it is able to respond to larger and more complex opportunities.

The company has maintained its disciplined approach to project selection, with tendering decisions continuing to consider margin, contractual risk, delivery capability and customer credit quality. The board remains focused on converting the enlarged and diversified pipeline into profitable delivery while maintaining appropriate commercial and financial controls.

The balance sheet remains strong, with net assets of £2.86m and cash at bank and in hand of £2.60m at the period end. This provides a stable platform from which the company can continue to invest in its people and capabilities and manage the working-capital requirements associated with its increased scale of operations.

The board believes that the broader customer base, sector diversification and continued investment in organisational capability leave the company well positioned to benefit as delayed funding decisions and projects progress into delivery.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks of the business continue to arise from the construction industry and comprise both operational risks associated with project delivery and financial and commercial risks associated with contract performance, customer credit and working capital. Strict process controls remain in place to monitor these risks. The company also seeks to reduce exposure through selective tendering, working with strategic partners, regular credit checks on customers and suppliers, and continued diversification of its services, customers and sectors.

PROJECT TIMING AND PRE-CONSTRUCTION EXPOSURE

Delays in funding approvals and project release can extend pre-construction periods and cause overhead expenditure to be incurred ahead of project delivery and margin recognition. The company manages this risk through pipeline reviews, resource planning, staged investment decisions and regular monitoring of project conversion and mobilisation.

ABILITY TO ATTRACT AND RETAIN HIGH-CALIBRE EMPLOYEES

The continued growth and diversification of the business depends upon attracting, developing and retaining appropriately skilled personnel. Recruitment and incentivisation arrangements are regularly reviewed, and the company continues to invest in its management, engineering and operational capability to support current and future work streams.

MATERIAL COSTS AND AVAILABILITY OF SPECIALIST SUB-CONTRACTORS

The company's supplier and sub-contractor database continues to be developed to support new and existing work streams. Bi-weekly Operations Meetings and monthly Trading Reviews are used to assess contract performance, supply-chain capacity and potential resource gaps so that issues can be identified and addressed proactively.

INFORMATION TECHNOLOGY AND BUSINESS CONTINUITY

The company uses information technology and decision-support systems for order processing, operational control and financial management. These systems are reviewed and updated to meet the changing needs of the business. Business continuity and disaster recovery arrangements are assessed and tested regularly.

CUSTOMER CREDIT RISK

The company provides credit to customers in the normal course of business and is therefore exposed to the risk of non-payment. Credit control procedures remain in place, with significant balances, overdue debts and potential exposures reviewed regularly. The expansion of the customer base also assists in reducing concentration risk, although the creditworthiness and contractual profile of each customer continue to be assessed individually.

KEY PERFORMANCE INDICATORS

The current financial statements cover an 18-month period, whereas the comparative figures cover the 12 months ended 30 November 2024. The absolute movements below should therefore be read with caution and alongside the underlying margins, balance-sheet measures and operational indicators.

For the period, turnover was £24,517,386 (2024: £10,668,348), gross profit was £1,802,878 (2024: £2,238,382) and the profit before taxation was £171,202 (2024: £820,761). Key features of business performance included the following:

-

Revenue increased by approximately £13.8m (£8.51m on a pro-rated basis) to £24,517,386 from £10,668,348.

-

Gross profit decreased by £435,504 to £1,802,878.

-

Gross profit margin reduced to 7.4% from 21.0%, reflecting the extended pre-construction period, project timing and the stage of delivery at the reporting date.

-

Administrative expenses increased by £460,209 to £2,299,610. On a simple annualised basis, administrative expenses were approximately £1.53m, compared with £1.84m in 2024.

-

The company reported an operating profit of £2,926, compared with an operating profit of £681,757 in 2024.

-

Profit before taxation was £171,202, compared with a profit before taxation of £820,761 in 2024.

-

No bad debt expense was reported in the period, compared with £538,831 in 2024.

-

Average employee numbers increased by 8 to 53, including an increase in engineers from 29 to 38.

-

Cash at bank and in hand increased by £379,533 to £2,597,808.

-

Net assets remained broadly stable at £2,864,452, compared with £2,768,708 at 30 November 2024.

-

The customer base and sector coverage broadened materially during the period, reducing concentration risk and supporting the company's longer-term growth strategy.

ON BEHALF OF THE BOARD:

A Wilmot - Director

27 August 2026

The directors present their report with the financial statements of the company for the period 1 December 2024 to 31 May 2026.

PRINCIPAL ACTIVITY

The principal activity of the company in the period under review was that of design, supply and installation of full mechanical and electrical services.

DIVIDENDS

During the year dividends of £Nil (2024: £396,788) were paid.

FUTURE DEVELOPMENTS

The group has been able to innovate and evolve with the ever changing environments in which it operates. Where technological, energy or operational advancements can be exploited these are explored, developed and implemented to 'future proof' the work carried out and AMD's position within the market place. The group sees itself at the technological forefront of its industry and strives to continually improve the services and products it provides.

DIRECTORS

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

J A King

M G Sullivan

D J Pearce

D B Peachey FCA

A Wilmot

FINANCIAL INSTRUMENTS

The company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are conducted in sterling. The company does not enter into any formally designated hedging arrangements.

DONATIONS

The company paid charitable donations of £10,890 in the period (2024: £2,800).

THIRD PARTY INDEMNITY PROVISION

There is a third party indemnity provision in place for the benefit of all directors of the company.

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make 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 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.

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 company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Lewis Brownlee (Chichester) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

A Wilmot - Director

27 August 2026

Opinion

We have audited the financial statements of AMD Environmental Limited (the 'company') for the period ended 31 May 2026 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 company's affairs as at 31 May 2026 and of its profit for the period 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the 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 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

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

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page five, 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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.

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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

-

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

-

we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector;

-

we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including legislation such as the Companies Act 2006, taxation legislation and the Health and Safety at Work Act;

-

we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence, where applicable; and

-

identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

-

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

-

considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

-

performed analytical procedures to identify any unusual or unexpected relationships;

-

tested journal entries to identify unusual transactions;

-

assessed whether judgements and assumptions made in determining the accounting estimates set out in the accounting policies were indicative of potential bias; and

-

investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

-

agreeing financial statement disclosures to underlying supporting documentation;

-

reading the minutes of meetings of those charged with governance, where applicable;

-

enquiring of management as to actual and potential litigation and claims; and

-

reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors, where applicable.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

Sam Ede BFP FCA FCCA (Senior Statutory Auditor)

for and on behalf of Lewis Brownlee (Chichester) Limited

Statutory Auditors

Appledram Barns

Birdham Road

Chichester

West Sussex

PO20 7EQ

27 August 2026

TURNOVER

3

24,517,386

10,668,348

Cost of sales

22,714,508

8,429,966

GROSS PROFIT

1,802,878

2,238,382

Administrative expenses

2,299,610

1,839,401

(496,732

)

398,981

Other operating income

499,658

282,776

OPERATING PROFIT

5

2,926

681,757

Interest receivable and similar income

168,276

139,004

PROFIT BEFORE TAXATION

171,202

820,761

Tax on profit

6

75,458

189,028

PROFIT FOR THE FINANCIAL PERIOD

95,744

631,733

PROFIT FOR THE PERIOD

95,744

631,733

OTHER COMPREHENSIVE INCOME

-

(170,278

)

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE PERIOD, NET OF INCOME TAX

-

(170,278

)

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

95,744

461,455

FIXED ASSETS

Tangible assets

8

90,768

63,462

CURRENT ASSETS

Stocks

9

1,000

1,000

Debtors

10

7,603,565

2,856,870

Cash at bank and in hand

2,597,808

2,218,275

10,202,373

5,076,145

CREDITORS

Amounts falling due within one year

11

7,419,884

2,339,403

NET CURRENT ASSETS

2,782,489

2,736,742

TOTAL ASSETS LESS CURRENT LIABILITIES

2,873,257

2,800,204

CREDITORS

Amounts falling due after more than one year

12

-

(24,081

)

PROVISIONS FOR LIABILITIES

15

(8,805

)

(7,415

)

NET ASSETS

2,864,452

2,768,708

CAPITAL AND RESERVES

Called up share capital

16

222

222

Capital redemption reserve

17

8

8

Capital contribution

17

150,080

150,080

Retained earnings

17

2,714,142

2,618,398

SHAREHOLDERS' FUNDS

2,864,452

2,768,708

The financial statements were approved by the Board of Directors and authorised for issue on 27 August 2026 and were signed on its behalf by:

A Wilmot - Director

Called up

Capital

share

Retained

redemption

Capital

Total

capital

earnings

reserve

contribution

equity

£

£

£

£

£

Balance at 1 December 2023

222

2,383,453

8

320,358

2,704,041

Changes in equity

Dividends

-

(396,788

)

-

-

(396,788

)

Total comprehensive income

-

631,733

-

(170,278

)

461,455

Balance at 30 November 2024

222

2,618,398

8

150,080

2,768,708

Changes in equity

Total comprehensive income

-

95,744

-

-

95,744

Balance at 31 May 2026

222

2,714,142

8

150,080

2,864,452

1.	STATUTORY INFORMATION

AMD Environmental Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are presented in Sterling (£), which is also the functional currency of the Company. Monetary amounts in these Financial Statements are rounded to the nearest £1.

Extended accounting period

The financial statements have been prepared for an 18-month period. Accordingly, the comparative figures presented for the previous period are not directly comparable.

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 33.7.

Going concern

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Turnover from contracts for the provision of goods and services is recognised when the outcome of a contract can be measured reliably, the entity will recognise both the income and costs (excluding non-productive costs) by reference to the percentage of completion of the contract. Turnover is calculated as that proportion of the total contract value which costs to date bear to total costs for that contract. Full provision is made for any foreseeable losses.

Tangible fixed assets

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life as follows:

Plant and machinery

-

20% per annum reducing balance

Motor vehicles

-

25% per annum reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Financial instruments

Financial instruments are classified by the director as basic or advanced following the conditions in FRS 102 section 11. Basic financial instruments are recognised at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost. The company's only non-basic financial instruments relates to share based payments. This accounting policy is described below.

Share-based payments

Certain employees of the company were awarded share options within a group share option scheme. Each tranche is an award and is considered a separate award with its own vesting period and grant date fair value. Fair value of each tranche is measured at the date of grant using the Black-Scholes option pricing model. Compensation expense is recognised over the tranche's vesting period based on the number of awards expected to vest, and is identified as a capital contribution, from parent company, in this company as the share options are for shares in the parent company. The number of awards expected to vest is reviewed over the vesting period, with any forfeitures recognised immediately.

Taxation

Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

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.

Significant judgements and estimates

In the application of the company'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 critical judgements made by management that have a significant effect on the amounts recognised in the financial statements are described below.

Construction contracts

In respect of construction contracts, management undertake regular progress reviews. Profits or losses are recognised within the income statement as part of a contract's revenue and cost where management consider that the outcome of a construction contract can be estimated reliably. Reliable estimates are determined with reference to each contract's stage of completion, future costs to complete and recoverability of amounts invoiced or applied for.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

Period

1/12/24

to

Year Ended

31/5/26

30/11/24

£

£

Construction contracts - UK

24,517,386

10,668,348

24,517,386

10,668,348

4.	EMPLOYEES AND DIRECTORS

Period

1/12/24

to

Year Ended

31/5/26

30/11/24

£

£

Wages and salaries

5,656,502

2,439,826

Social security costs

741,259

305,380

Other pension costs

104,604

39,929

6,502,365

2,785,135

The average number of employees during the period was as follows:

Period

1/12/24

to

Year Ended

31/5/26

30/11/24

Engineers

38

29

Administration

10

11

Directors

5

5

53

45

Period

1/12/24

to

Year Ended

31/5/26

30/11/24

£

£

Directors' remuneration

1,065,919

285,543

Directors' pension contributions to money purchase schemes

5,283

818

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

2

Information regarding the highest paid director is as follows:

Period

1/12/24

to

Year Ended

31/5/26

30/11/24

£

£

Emoluments etc

365,115

140,560

Pension contributions to money purchase schemes

-

110

The company provided benefits in kind totalling £37,096 (2024: £27,124) to directors during the year.

5.	OPERATING PROFIT

The operating profit is stated after charging:

Period

1/12/24

to

Year Ended

31/5/26

30/11/24

£

£

Other operating leases

201,468

111,957

Depreciation - owned assets

36,790

9,445

Depreciation - assets on hire purchase contracts

12,840

8,560

Auditors' remuneration - audit fees

18,750

12,750

Auditors' remuneration - other services provided

2,950

10,150

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the period was as follows:

Period

1/12/24

to

Year Ended

31/5/26

30/11/24

£

£

Current tax:

UK corporation tax

82,114

192,107

Over-provision of tax in prior

years

(8,046

)

-

Total current tax

74,068

192,107

Deferred tax

1,390

(3,079

)

Tax on profit

75,458

189,028

Reconciliation of total tax charge included in profit and loss

The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The difference is explained below:

Period

1/12/24

to

Year Ended

31/5/26

30/11/24

£

£

Profit before tax

171,202

820,761

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

42,801

205,190

Effects of:

Expenses not deductible for tax purposes

32,657

26,408

Share based payments adjustment

-

(42,570

)

Total tax charge

75,458

189,028

Tax effects relating to effects of other comprehensive income

2024

Gross

Tax

Net

£

£

£

Capital contribution

(170,278

)

-

(170,278

)