Company registration number 09743841 (England and Wales)
WILLIAM BIRCH HOLDINGS LIMITED
GROUP ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
WILLIAM BIRCH HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr C W Birch
Mr P A Goyea
Mr A Birch
Mr D Kilvington
Company number
09743841
Registered office
Link Road Court
Osbaldwick
York
North Yorkshire
YO10 3JQ
Auditor
Henton & Co LLP
124 Acomb Road
York
YO24 4EY
Bankers
Barclays Bank Plc
Parliament Street
York
YO1 8XD
WILLIAM BIRCH HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
16
Notes to the financial statements
17 - 32
WILLIAM BIRCH HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 1 -

The directors present the strategic report for the year ended 31 December 2025.

Review of the business

 

Strategy and Objectives

 

The directors’ objectives for the Group have been and remain to:

 

 

 

 

 

 

Operational structure

 

The Group, headquartered in York, has historically combined several operations within one entity: construction, property development and property & farm estate management.

 

Within the construction operations there are sub-divisions of construction type: traditional one-off, framework, design & build, small building improvement and alteration works. The size range of construction projects within the Company’s scope is £12 million down to £100,000 and the geographical range is centred on Yorkshire, extending into neighbouring counties. Institutional customers have predominantly been in the educational, health and local authority residential sectors; with heritage, leisure and a limited exposure on commercial projects featuring among the private and charitable sectors’ workloads. The diversity in size, type and location of contracts undertaken allows the Group to maximise its usage of capacity and resources to smooth out fluctuations within differing pipelines of contract types.

 

The equipment and vehicle hire operation functions as a cost neutral service for the benefit of the business’s own construction sites. Investment in the equipment and vehicle fleet is undertaken where this will improve efficiency, commercial and environmental performance.

 

The property development operations boost turnover and have added a strong asset base, offering clients enhanced services on design and construction projects. This additional workload within our programming control also allows the directors to more effectively balance our resource availability to meet all customers’ needs. A cash balance has always been maintained by the Group to allow speedy response where clients have an immediate need for premises to enhance their operations, this also provides the cash necessary to carry out enabling works on new development sites.

WILLIAM BIRCH HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 2 -

Market trends

 

The perennial fluctuating fortunes of the construction sector were reflected in the contrasting trends the Industry experienced in closing-out of 2024. There had been a 1% increase in activity within Q3 2024 which continued a trend from Q2. Though Q4 then experienced a significant slowdown in overall contract awards – 30% in total across Q3 & 4 – but a slight (0.2%) uplift in overall activity in the last quarter of the year.

 

These fluctuating indicators fed into the new 2025 year though were slightly contrasted by reasonable optimism, amongst commentators, of increased activity to come in 2025. Our primary business sector, which is within repair + maintenance, was second-only in improving growth, to infrastructure works; with residential the Industry’s weakest sector.

 

In February/March 2025; there was reporting of 0.4% growth in activity; though there was increasing concern that the principal sector, infrastructure, which had supported/driven the rest of the Industry in previous few years, was itself suffering a mini-slump. As 2025 Q1 activity moved into the Spring; commentators were forecasting 2yrs of positive growth with 2.1 & 4.0% respectively for years 2025 & 26. Such forecasts did though hold challenges; in particular for large projects (+£100m) which were forecast to appreciable reduction in numbers; which compared unfavourably to smaller projects increasing (12% year-on-year) which of course is where our market/customers reside and so has been more positive news for the business.

 

Customers were increasingly delaying their decision to bring projects to market; which of course heightens uncertainty. And the end of Q2 2025 resulted in the fourth consecutive Q decline in UK construction activity. On balance nevertheless, there remained optimism within the Industry about the prospects for the next 12 months; with around 40% of construction companies forecasting a rise in output, while only 18% predict a decline.

 

Construction analysts maintained a longer-term view that the Industry, in comparison to some other sectors, had retained it’s resilience; and despite the challenges was expected to grow over the coming 3 years up to 2028.

Principal risks and uncertainties

 

It is not surprising that taken-on all of the above trends and forecasts that the Industry resorted to reporting that future construction activity was simply proving too difficult to predict due to the contrasting data.

 

Optimism has been tempered; with the obvious head-winds of conflict around the globe, US protectionist attitudes and closer to home skilled labour shortages which were yet to be addressed adequately by the Industry or Government. Again this was contrasted by slightly more positive signs for the UK economy with the closing of 2024 seeing lower inflation at around 2.3% and the expectation of interest rates to drop toward 4.5%

 

Forecasts indicating a bumpy but nevertheless growing construction activity relied upon Government investment in UK infrastructure, housing and energy; as well as addressing the Industry’s skills gap. Global conflicts, oil prices and trade tariffs remained the threat throughout 2025.

 

Leading into 2026; growth in the Industry was expected to see residential and commercial offices to join infrastructure as the driving forces behind construction output. Major infrastructure projects such as Transpennine Rail Upgrade and Heathrow Third runway were needed to come more on-stream.

 

The sector is reporting that overall there are 200,000 new skilled workers required to meet the 5yr housing targets; and 47,000 additional workers every year to meet our entire Industry’s growth. Both our company and the Industry are struggling to meet skilled recruitment needs; with such being hampered by the cut-back in expenditure from the CITB training levy.

WILLIAM BIRCH HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 3 -
Development and performance

 

A notable feature of 2025 performance has been the reduction in turnover while simultaneously increasing the Operating Profit margin from 4.8% to 5.7%, and as a result maintaining a similar profitability in cash terms.

 

Tendering has seen increased levels of competition throughout the year combined with a hesitancy amongst clients to commit to projects, resulting in lower levels of tender awards and consequently turnover. However, this has been offset to a degree by building a stronger enquiry pipeline and garnering increased numbers of negotiated tender opportunities.Overall, contracts have been delivered very successfully with even the more challenging ones avoiding losses and thereby still adding to the overall profitability of the business.

 

There has been a slight fall in employee numbers matching the reduced turnover, but there are concerns that, if and when there is an upturn in business levels, the pool of available and suitable candidates to appoint within the industry is very restricted.

 

Property has performed well with increases in rental levels as a result of strong demand in the smaller sized industrial property sector, although one or two properties have proved difficult to relet because of certain areas of market weakness.

 

After many decades of effort by the business, another 19 acres of ex-airfield land has been scheduled for employment use within the finally agreed York Local Plan. This will require significant resources to develop efficiently. The consequent uplift in property value has been recognized and adds to our existing bank of land retained for future development purposes.

 

The directors have spent much time throughout the year working on a detailed strategy to ensure the long-term sustainability, culture, and reputation of the William Birch & Sons construction business that is consistent with shareholders’ aims.

Key performance indicators

 

WILLIAM BIRCH HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 4 -

 

Financial performance Indicators for the Group are:

 

 

2025

2024

Turnover

£18.2m

£24.1m

Profit before tax

£1.6m

£1.2m

Net assets at year end

£15.1m

£14.1m

 

 

Other information and explanations

The business continues to receive unsolicited testimonials and letters of thanks for its operations. Our projects regularly gain industry awards, and they score highly on the Considerate Constructors Scheme’s assessments. We continue to maintain our PR, social media and communications profile and engage with and support our customers and local community alike.

 

The business continues to nurture employee wellbeing, relationships and cohesion with a constant focus on supporting employees through the mental first-aider cohort and the distribution of the monthly Business Updates. Encouragement is also given to our employees to participate in team challenges, charity/community volunteer days, and social events.

 

William Birch & Sons Ltd continues to be accredited for its Environmental Management Systems under BS EN ISO 14,001:2015 and for its Quality Assurance under BS EN ISO 9001:2015. The Company is committed to Net Zero Carbon by 2050 and is meeting the targets set in its Carbon Reduction Plan.

 

William Birch & Sons Ltd’s safety procedures continue to be accredited annually under the industry recognised CHAS safety assessment scheme, this year achieving the enhanced Elite level of compliance.

On behalf of the board

Mr C W Birch
Director
13 July 2026
WILLIAM BIRCH HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 5 -

The directors present their annual report and financial statements for the year ended 31 December 2025.

Principal activities

The principal activity of the company and group continued to be that of construction.

Results and dividends

The results for the year are set out on page 6.

Ordinary dividends were paid amounting to £150,000 in respect of 2024. The directors recommend payment of a final dividend amounting to £150,000.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr C W Birch
Mr P A Goyea
Mr A Birch
Mr D Kilvington
Auditor

Henton & Co LLP were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of principal risks and uncertainties.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Mr C W Birch
Director
13 July 2026
WILLIAM BIRCH HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 6 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

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:

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.

WILLIAM BIRCH HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WILLIAM BIRCH HOLDINGS LIMITED
- 7 -
Opinion

We have audited the financial statements of William Birch Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise 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).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information 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 our audit:

WILLIAM BIRCH HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WILLIAM BIRCH HOLDINGS LIMITED
- 8 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the group's and 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.

Auditor's responsibilities for the audit of the financial statements

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

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

- Enquiry of management and those charged with governance around actual and potential litigation and claims.

- Enquiry of entity staff to identify any instances of non-compliance with 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.

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.

WILLIAM BIRCH HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WILLIAM BIRCH HOLDINGS LIMITED
- 9 -
Brett Davis (Senior Statutory Auditor)
For and on behalf of Henton & Co LLP, Statutory Auditor
Chartered Accountants
124 Acomb Road
York
YO24 4EY
13 July 2026
WILLIAM BIRCH HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
- 10 -
2025
2024
Notes
£
£
Turnover
3
18,231,062
24,069,834
Cost of sales
(15,144,776)
(20,795,011)
Gross profit
3,086,286
3,274,823
Administrative expenses
(2,216,093)
(2,391,749)
Other operating income
279,532
262,135
Operating profit
4
1,149,725
1,145,209
Interest receivable and similar income
8
260,840
253,388
Interest payable and similar expenses
9
-
0
(559)
Amounts written off investments
10
180,948
(155,649)
Profit before taxation
1,591,513
1,242,389
Tax on profit
11
(375,705)
(314,027)
Profit for the financial year
23
1,215,808
928,362
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

WILLIAM BIRCH HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2025
31 December 2025
- 11 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
13
1,860,039
1,507,827
Investment property
14
7,700,000
7,860,000
9,560,039
9,367,827
Current assets
Stocks
17
510,682
489,615
Debtors
18
1,791,388
1,899,049
Cash at bank and in hand
9,137,736
7,641,534
11,439,806
10,030,198
Creditors: amounts falling due within one year
19
(5,521,885)
(5,065,969)
Net current assets
5,917,921
4,964,229
Total assets less current liabilities
15,477,960
14,332,056
Provisions for liabilities
Deferred tax liability
20
330,720
250,624
(330,720)
(250,624)
Net assets
15,147,240
14,081,432
Capital and reserves
Called up share capital
22
50,000
50,000
Profit and loss reserves
23
15,097,240
14,031,432
Total equity
15,147,240
14,081,432

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 13 July 2026 and are signed on its behalf by:
13 July 2026
Mr C W Birch
Director
Company registration number 09743841 (England and Wales)
WILLIAM BIRCH HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2025
31 December 2025
- 12 -
2025
2024
Notes
£
£
£
£
Fixed assets
Investment property
14
2,950,000
2,850,000
Investments
15
50,100
50,100
3,000,100
2,900,100
Current assets
Debtors
18
43,805
60,985
Cash at bank and in hand
1,395,442
1,317,482
1,439,247
1,378,467
Creditors: amounts falling due within one year
19
(343,140)
(237,157)
Net current assets
1,096,107
1,141,310
Total assets less current liabilities
4,096,207
4,041,410
Provisions for liabilities
Deferred tax liability
20
5,000
-
0
(5,000)
-
Net assets
4,091,207
4,041,410
Capital and reserves
Called up share capital
22
50,000
50,000
Profit and loss reserves
23
4,041,207
3,991,410
Total equity
4,091,207
4,041,410

As permitted by s408 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 £199,798 (2024 - £29,127 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 13 July 2026 and are signed on its behalf by:
13 July 2026
Mr C W Birch
Director
Company registration number 09743841 (England and Wales)
WILLIAM BIRCH HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2024
50,000
13,253,070
13,303,070
Year ended 31 December 2024:
Profit and total comprehensive income
-
928,362
928,362
Dividends
12
-
(150,000)
(150,000)
Balance at 31 December 2024
50,000
14,031,432
14,081,432
Year ended 31 December 2025:
Profit and total comprehensive income
-
1,215,808
1,215,808
Dividends
12
-
(150,000)
(150,000)
Balance at 31 December 2025
50,000
15,097,240
15,147,240
WILLIAM BIRCH HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2024
50,000
4,112,282
4,162,282
Year ended 31 December 2024:
Profit and total comprehensive income for the year
-
29,128
29,128
Dividends
12
-
(150,000)
(150,000)
Balance at 31 December 2024
50,000
3,991,410
4,041,410
Year ended 31 December 2025:
Profit and total comprehensive income
-
199,797
199,797
Dividends
12
-
(150,000)
(150,000)
Balance at 31 December 2025
50,000
4,041,207
4,091,207
WILLIAM BIRCH HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 15 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
1,548,057
2,571,220
Interest paid
-
0
(559)
Income taxes (paid)/refunded
(198,558)
559
Net cash inflow from operating activities
1,349,499
2,571,220
Investing activities
Purchase of tangible fixed assets
(278,579)
(53,853)
Proceeds from disposal of tangible fixed assets
264,092
14,195
Proceeds from disposal of investment property
40,000
7,000
Interest received
260,840
253,388
Net cash generated from investing activities
286,353
220,730
Financing activities
Dividends paid to equity shareholders
(139,650)
(150,000)
Net cash used in financing activities
(139,650)
(150,000)
Net increase in cash and cash equivalents
1,496,202
2,641,950
Cash and cash equivalents at beginning of year
7,641,534
4,999,584
Cash and cash equivalents at end of year
9,137,736
7,641,534
WILLIAM BIRCH HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 16 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
25
210,585
(182,523)
Interest paid
-
0
(559)
Income taxes (paid)/refunded
(40,513)
559
Net cash inflow/(outflow) from operating activities
170,072
(182,523)
Investing activities
Interest received
46,553
26,885
Dividends received
-
0
350,000
Net cash generated from investing activities
46,553
376,885
Financing activities
Repayment of borrowings
985
-
Dividends paid to equity shareholders
(139,650)
(150,000)
Net cash used in financing activities
(138,665)
(150,000)
Net increase in cash and cash equivalents
77,960
44,362
Cash and cash equivalents at beginning of year
1,317,482
1,273,120
Cash and cash equivalents at end of year
1,395,442
1,317,482
WILLIAM BIRCH HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 17 -
1
Accounting policies
Company information

William Birch Holdings Limited (“the Company”) is a private company limited by shares domiciled and incorporated in England and Wales. The registered office is Link Road Court, Osbaldwick, York, North Yorkshire, YO10 3JQ.

 

The group consists of William Birch Holdings Limited and its subsidiaries, William Birch & Sons Limited and Brinkworth Rush Developments Limited. The subsidiaries are both private limited companies incorporated in England and Wales. The registered offices are that of the parent company.

1.1
Basis of preparation

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 investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

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.

 

All financial statements are made up to 31 December 2024. 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.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

WILLIAM BIRCH HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 18 -

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group and parent company have adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Revenue

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.

 

Revenue from construction contracts is recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt considered probably.

 

When the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probably that they will be recoverable.

 

Income from investment properties is recognised in the period in which the rents are due.

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

WILLIAM BIRCH HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 19 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
by equal annual installments (typically over 50 years). No depreciation is provided on freehold land except where the land is included with other depreciable property and the cost of land in not identifiable.
Leasehold land and buildings
by equal annual installments over the life of the lease or typically 50 years if less.
Plant and machinery
principally 3-10 years.
Fixtures, fittings & equipment
principally 3-10 years.
Motor vehicles
principally 5-10 years.

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.

1.7
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

1.8
Fixed asset investments

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.

1.9
Impairment of fixed assets

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.

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.

WILLIAM BIRCH HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 20 -

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.

1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.12
Financial instruments

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

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

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.

WILLIAM BIRCH HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 21 -
Impairment of financial assets

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.

Derecognition of financial assets

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.

Classification of financial liabilities

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

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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

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.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

WILLIAM BIRCH HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 22 -
Current 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

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.

 

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.

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.

1.15
Employee benefits

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.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.17
Leases
As lessor

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.

WILLIAM BIRCH HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 23 -
2
Judgements and key sources of estimation uncertainty

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.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2025
2024
£
£
Turnover analysed by class of business
Construction
17,897,196
23,787,848
Other operating income
333,866
281,986
18,231,062
24,069,834
2025
2024
£
£
Other revenue
Interest income
260,840
253,388
Rental income arising from investment properties
279,531
262,135
4
Operating profit
2025
2024
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of tangible fixed assets
122,455
104,419
Profit on disposal of tangible fixed assets
(159,232)
(16,308)
5
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
8,895
8,100
Audit of the financial statements of the company's subsidiaries
14,800
13,850
23,695
21,950
WILLIAM BIRCH HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 24 -
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2025
2024
2025
2024
Number
Number
Number
Number
Managerial, technical and administrative staff
22
26
4
4
Site based staff
27
28
-
-
Total
49
54
4
4

Their aggregate remuneration comprised:

Group
Company
2025
2024
2025
2024
£
£
£
£
Wages and salaries
2,233,535
2,346,225
68,956
69,003
Social security costs
364,802
345,277
4,127
7,971
Pension costs
119,454
127,306
-
0
-
0
2,717,791
2,818,808
73,083
76,974
7
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
671,971
633,377
Company pension contributions to defined contribution schemes
27,570
26,669
699,541
660,046
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2025
2024
£
£
Remuneration for qualifying services
161,503
140,994
Company pension contributions to defined contribution schemes
7,783
7,780

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2024 - 5).

WILLIAM BIRCH HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 25 -
8
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest on bank deposits
260,840
253,388
2025
2024
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
260,840
253,388
9
Interest payable and similar expenses
2025
2024
£
£
Other finance costs:
Other interest
-
559
10
Amounts written off investments
2025
2024
£
£
Fair value gains/(losses) on financial instruments
Gain/(loss) on financial assets held at fair value through profit or loss
180,948
(1,000)
Other gains/(losses)
Amounts written back to/(written off) financial assets held at cost
-
(154,649)
180,948
(155,649)
11
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
295,609
126,471
Adjustments in respect of prior periods
-
0
50,866
Total current tax
295,609
177,337
Deferred tax
Origination and reversal of timing differences
80,096
136,690
Total tax charge
375,705
314,027
WILLIAM BIRCH HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
11
Taxation
(Continued)
- 26 -

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:

2025
2024
£
£
Profit before taxation
1,591,513
1,242,389
Expected tax charge based on the standard rate of corporation tax in the UK of 25% (2024: 25%)
397,878
310,597
Effects of:
Expenses that are not deductible in determining taxable profit
13,254
11,267
Gains not taxable
(39,808)
(4,077)
Utilisation of tax losses not previously recognised
-
0
(202,551)
Adjustments in respect of prior years
-
0
50,866
Adjustments in respect of financial assets
187
-
0
Tax at marginal rate
-
0
(527)
Capital allowances
(61,279)
(14,593)
Depreciation
30,614
26,105
Adjustment in respect of investment property fair value increase
(45,237)
250
Deferred tax movement
80,096
136,690
Taxation charge in the financial statements
375,705
314,027
12
Dividends
2025
2024
Recognised as distributions to equity holders:
£
£
Final paid
150,000
150,000

Ordinary dividends were paid amounting to £150,000 in respect of 2024. The directors recommend payment of a final dividend amounting to £150,000.

WILLIAM BIRCH HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 27 -
13
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2025
1,889,589
223,117
131,163
651,308
640,120
3,535,297
Additions
-
0
-
0
1,842
13,881
262,856
278,579
Disposals
-
0
(223,117)
-
0
-
0
(122,387)
(345,504)
Transfer from investment property
300,948
-
0
-
0
-
0
-
0
300,948
At 31 December 2025
2,190,537
-
0
133,005
665,189
780,589
3,769,320
Depreciation and impairment
At 1 January 2025
731,645
125,257
119,648
527,485
523,435
2,027,470
Depreciation charged in the year
31,560
-
0
4,424
28,184
58,287
122,455
Eliminated in respect of disposals
-
0
(125,257)
-
0
-
0
(115,387)
(240,644)
At 31 December 2025
763,205
-
0
124,072
555,669
466,335
1,909,281
Carrying amount
At 31 December 2025
1,427,332
-
0
8,933
109,520
314,254
1,860,039
At 31 December 2024
1,157,944
97,860
11,515
123,823
116,685
1,507,827
The company had no tangible fixed assets at 31 December 2025 or 31 December 2024.

During the year freehold property increased by £300,948 due to the transfer of land previously classified as investment property. The transfer reflects a change in use and has been recognised at carrying amount in accordance with FRS 102 Section 17.

14
Investment property
Group
Company
2025
2025
£
£
Fair value
At 1 January 2025
7,860,000
2,850,000
Transfers to owner-occupied property
(300,948)
-
Disposals
(40,000)
-
Net gains or losses through fair value adjustments
180,948
100,000
At 31 December 2025
7,700,000
2,950,000
WILLIAM BIRCH HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
14
Investment property
(Continued)
- 28 -

Investment property comprises a varied portfolio of land and properties. The fair value of the investment property has been arrived at on the basis of a valuation carried out at 31 December 2025 by the Directors of the Company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

Investment property with a carrying amount of £300,948 was transferred to freehold property during the year following a change in use. The transfer was made at carrying amount in accordance with FRS 102 Section 16.

15
Fixed asset investments
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
50,100
50,100
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2025 and 31 December 2025
50,100
Carrying amount
At 31 December 2025
50,100
At 31 December 2024
50,100
16
Subsidiaries

Details of the company's subsidiaries at 31 December 2025 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
William Birch & Sons Limited
1 Link Road Court, Osbaldwick, York, YO10 3JQ
Ordinary
100.00
Brinkworth Rush Developments Limited
1 Link Road Court, Osbaldwick, York, YO10 3JQ
Ordinary
100.00
17
Stocks
Group
Company
2025
2024
2025
2024
£
£
£
£
Raw materials and consumables
5,733
5,900
-
-
Work in progress
17,751,798
15,358,669
-
-
Payments received on account
(17,246,849)
(14,874,954)
-
0
-
0
510,682
489,615
-
-
WILLIAM BIRCH HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 29 -
18
Debtors
Group
Company
2025
2024
2025
2024
Amounts falling due within one year:
£
£
£
£
Trade debtors
258,214
403,048
43,805
60,985
Gross amounts owed by contract customers
1,348,195
1,323,420
-
0
-
0
Other debtors
85,713
86,738
-
0
-
0
Prepayments and accrued income
99,266
85,843
-
0
-
0
1,791,388
1,899,049
43,805
60,985
19
Creditors: amounts falling due within one year
Group
Company
2025
2024
2025
2024
£
£
£
£
Trade creditors
4,126,023
3,781,954
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
193,090
75,786
Corporation tax payable
252,520
155,469
48,089
40,513
Other taxation and social security
693,274
748,045
14,679
6,175
Dividends payable
10,350
-
0
10,350
-
0
Other creditors
93,447
4,879
-
0
-
0
Accruals and deferred income
346,271
375,622
76,932
114,683
5,521,885
5,065,969
343,140
237,157
20
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2025
2024
Group
£
£
Accelerated capital allowances
92,064
49,705
Revaluations
20,237
-
Investment property
218,419
200,919
330,720
250,624
Liabilities
Liabilities
2025
2024
Company
£
£
Investment property
5,000
-
WILLIAM BIRCH HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
20
Deferred taxation
(Continued)
- 30 -
Group
Company
2025
2025
Movements in the year:
£
£
Liability at 1 January 2025
250,624
-
Charge to profit or loss
80,096
5,000
Liability at 31 December 2025
330,720
5,000

The reversal of deferred tax in the year commencing 1 January 2026 is not expected to be material.

21
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
119,454
127,306

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.

22
Share capital
Group and company
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
50,000
50,000
50,000
50,000

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company. All shares rank equally with regard to the Company's residual assets.

23
Profit and loss reserves
Group
Company
2025
2024
2025
2024
£
£
£
£
At the beginning of the year
14,031,432
13,253,070
3,991,410
4,112,282
Profit for the year
1,215,808
928,362
199,797
29,128
Dividends
(150,000)
(150,000)
(150,000)
(150,000)
At the end of the year
15,097,240
14,031,432
4,041,207
3,991,410

This reserve records retained earnings and accumulated losses.

WILLIAM BIRCH HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
23
Profit and loss reserves
(Continued)
- 31 -

Included within profit and loss reserves are non-distributable profits, as set out below:

Group
Company
2025
2024
2025
2024
£
£
£
£
Non-distributable profits included above
At the beginning of the year
602,757
543,507
-
15,000
Non distributable profits in the year
113,211
59,250
15,000
(15,000)
At the end of the year
715,968
602,757
15,000
-
Distributable profits
14,381,272
13,428,675
4,026,207
3,991,410
24
Cash generated from group operations
2025
2024
£
£
Profit after taxation
1,215,808
928,362
Adjustments for:
Taxation charged
375,705
314,027
Finance costs
-
0
559
Investment income
(260,840)
(253,388)
Gain on disposal of tangible fixed assets
(159,232)
(16,308)
Depreciation and impairment of tangible fixed assets
122,455
104,419
Other gains and losses
(180,948)
155,649
Movements in working capital:
(Increase)/decrease in stocks
(21,067)
1,513,836
Decrease/(increase) in debtors
107,661
(197,464)
Increase in creditors
348,515
21,528
Cash generated from operations
1,548,057
2,571,220
WILLIAM BIRCH HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 32 -
25
Cash generated from/(absorbed by) operations - company
2025
2024
£
£
Profit after taxation
199,797
29,128
Adjustments for:
Taxation charged
53,089
6,515
Finance costs
-
0
559
Investment income
(46,553)
(376,885)
Other gains and losses
(100,985)
320,363
Movements in working capital:
Decrease/(increase) in debtors
17,180
(20,922)
Increase/(decrease) in creditors
88,057
(141,281)
Cash generated from/(absorbed by) operations
210,585
(182,523)
26
Analysis of changes in net funds - group
1 January 2025
Cash flows
31 December 2025
£
£
£
Cash at bank and in hand
7,641,534
1,496,202
9,137,736
27
Analysis of changes in net funds - company
1 January 2025
Cash flows
Other non-cash changes
31 December 2025
£
£
£
£
Cash at bank and in hand
1,317,482
77,960
-
1,395,442
Borrowings excluding overdrafts
-
(985)
985
-
1,317,482
76,975
985
1,395,442
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