REGISTERED NUMBER: 01791754 (England and Wales)

Evadx Limited

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 30 November 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

14

DIRECTORS:

Mr R T Adams

Mr S G Adams

Mrs B L Griffin

SECRETARY:

Mrs B Adams

REGISTERED OFFICE:

Unit 9, Tir Llwyd Enterprise Park

St Asaph Avenue

Kinmel Bay

Rhyl

LL18 5JZ

REGISTERED NUMBER:

01791754 (England and Wales)

AUDITORS:

Salisbury & Company Business Solutions Limited

Statutory Auditors

Chartered Accountants

Irish Square

Upper Denbigh Road

St Asaph

Denbighshire

LL17 0RN

The directors present their strategic report for the year ended 30 November 2025.

REVIEW OF BUSINESS

The year ending 30 November 2025 saw a decrease in turnover from £12.941 million in 2024 to £7.361 million. However, net profit saw a decrease from £0.723m in 2024 to £0.336m.

We are committed to maintaining a strong balance sheet and at the end of the year the net assets totalled £2.748 million (2024: £2.658 million).

Despite ongoing challenges in the construction industry and the continued pressure on margins from escalating costs, we remain focused on working through these challenges with flexibility and making confident, cost-conscious decisions.

The company continues to deliver quality steelwork contracts and recognises that its success could not be achieved without the resilience, determination and dedication of our team.

PRINCIPAL RISKS AND UNCERTAINTIES

The company regularly reviews the risks and uncertainties within the business and the principal material risks identified by the company are as follows:

Competition/maintaining an order book

The majority of the company's turnover is through the traditional procurement process whereby the company submits a tender for the work to be carried out. Competition from other contractors and a downturn in economic conditions would adversely affect the company's ability to secure work. When tendering, careful consideration is also needed due fluctuation in prices and profitability. The company manages the risk by building a strong order book and ensuring contracts are delivered on time, within budget and to the required standard/quality to maintain a good reputation.

Delays in commencement of projects

Whilst our order book remains strong, delay's in construction start dates, which is out of our control remains an ongoing risk and can have a significant impact on business planning, project turnover however, these are closely managed

Credit risk/insolvency of customers

The company recognises the importance of debtor management and the need to reduce the risk of financial loss due to a counterparty's failure to honour its obligation. To manage the credit risk, customers are subject to credit risk assessments and overdue debtors together with retentions are regularly monitored to keep to a minimum.

Health and safety

The company's activities are inherently complex and potentially hazardous and failure to meet safety standards or ineffective management could result in the injury or death of employees, members of the public or third parties. The risk is managed by continuously monitoring and management of health, safety and environmental risks.

Supply Chain

One of the important aspects of the business, is its supply chain management. The company has long standing relationships with its key suppliers to ensure that we achieve the best quality and price whilst also ensuring that we are not over reliant on any one supplier or subcontractor.

Human Resource

The availability of skilled labour continues to be a concern, and the company recognises that a key component to is continued success and to enable it to meet the challenges that it faces is the ability to attract, retain and develop the best people it can.

DEVELOPMENT AND PERFORMANCE

The company remains focused on the future, and despite a decline in business enquires, the company continues to win contracts and holds a strong order book.

The company realises that with the current market conditions, we need to be very flexible and look at various opportunities and income streams by way of small, medium and large contract of all types and believe by having this approach this will give us the strengths and opportunities to succeed in a difficult trading market.

We also recognise the importance of networking and obtaining new contacts to boost our presence and opportunities in the market place.

Combining this with the strength of a resilient team, reinforces the director's confidence in the company's ability to maintain momentum and achieve future growth.

Liquidity challenges continue to be a widespread concern across the supply chain however, we manage this risk by ensuring we are not over reliant on one supplier.

Our cash position remains strong and cash in the bank at the end of the financial year stood at £2.216 million (2024: £1.922 million) The strong liquidity supported by good financial control enables us to pay our supply chain promptly and can also give assurance of long-term solvency.

The company at the year-end remains in a strong financial position.

KEY PERFORMANCE INDICATORS

The company's financial and key performance indicators during the period were as follows:

2025

2024

2023

£'000

£'000

£'000

Turnover

7,361

12,941

10,792

Gross Profit

1,547

1,933

2,803

Profit Before Taxation

336

723

1,773

Customer satisfaction is one of the non-financial key performance indicators we track to get a fuller picture of performance, which we collect annually and indicates continued high satisfaction, suggesting confidence in current operational strategies. The trend analysis also confirms that most recent scores are improved compared to previous years.

This data demonstrates a clear trajectory of customer-focused growth, validating the effectiveness of our initiatives and providing a strong foundation for future planning.

ON BEHALF OF THE BOARD:

Mrs B L Griffin - Director

27 August 2026

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of welding and fabrication engineers.

DIVIDENDS

The total distribution of dividends for the year ended 30 November 2025 will be £ 437,000 .

RESEARCH AND DEVELOPMENT

The company undertakes research and development activities when providing services to clients. The direct expenditure invested is typically included in the relevant project.

FUTURE DEVELOPMENTS

The company continues to promote its reputation for delivering high quality work and by engaging across multiple market streams, our order book remains strong.

We are continually working to reduce our carbon footprint and remain committed to reduce our carbon footprint. Our plan to install solar panels has been on hold however, we remain fully committed to implementing them, which will hopefully cut costs, bring in extra revenue, reduce reliance on rising energy prices and minimise its carbon footprint. Energy prices have been increasing gradually for years and this is expected to continue to rise as fossil fuels (which are traditionally used to generate electricity) become harder to source. By generating their own electricity from solar panels they will reduce their reliance on the National Grid and the fluctuating prices. This should make budgeting and forecasting much more straightforward.

As the company does not currently operate during the night, the aim is to still put their solar energy to use. They will be installing a solar storage battery alongside the solar panels which will enable them to store any unused electricity.

Growth and expansion remain firmly on our agenda, and we are continuing to evaluate the potential for establishing an in-house blast and painting operations as part of our long-term development strategy.

DIRECTORS

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

Mr R T Adams

Mr S G Adams

Mrs B L Griffin

FINANCIAL INSTRUMENTS

The company use various financial instruments including bank loans, cash reserves, hire purchase, finance leases, trade debtors, trade supplier accounts to allow the company to operate effectively.

The existence of these financial instruments could expose the company to a number of risks which are described in more detail below.

The main risks arising from the company's financial instruments are liquidity risk, interest rate risk and credit risk.

Liquidity risk

The company manages financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. The company's liquidity position is reviewed regularly by the directors and the cashflow is forecast regularly to provide up-to-date and accurate information on the company's current cash position.

Interest rate risk

The company finances its operations through a mixture of retained profits and asset finance borrowings. The company's exposure to interest rate fluctuation is managed using both fixed and floating facilities.

Credit risk

The company's principal financial assets are trade debtors and other receivables. The company manages credit risk regularly reviews credit rating information regarding organisations in conjunction with debt ageing and collection history.

STRATEGIC REPORT

The review of the business, future developments, key performance indicators and principal risks and uncertainties are included within the strategic report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Salisbury & Company Business Solutions Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mrs B L Griffin - Director

27 August 2026

Opinion

We have audited the financial statements of Evadx Limited (the 'company') for the year ended 30 November 2025 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 30 November 2025 and of its profit for the year then ended;

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

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

Basis for opinion

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the 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 Statement of Directors' Responsibilities 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.

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

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. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatement in the financial statements may not be detected, even though the audit is properly planned in accordance with ISA (UK).

We obtained an understanding of the legal and regulatory frameworks applicable to the company and the industry in which it operates through our general commercial and sector experience and discussions with management. We determined that the following laws and regulations were most significant: The Companies Act 2006, FRS 102 the 'Financial Reporting Standards applicable in the UK and Republic of Ireland' and relevant UK tax legislation. In addition, we concluded that there are certain laws and regulations that may have an effect on the determination of the amounts and disclosures within the financial statements such as Health and Safety laws and regulations.

We accessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

- Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations or fraud;

- Obtain an understanding of the internal controls that management have in place to prevent and detect fraud;

- Challenging assumptions and judgements made by management in its significant accounting estimates;

- Reviewing the financial statement disclosures and assessing the appropriateness of the accounting policies used;

- Identifying and testing journal entries, in particular manual or unusual entries;

- Obtaining third party confirmations of all the companies banking arrangements;

- Performing analytical procedures to identify any unusual or unexpected relationships;

- Conclude on the appropriateness of the directors' use of the going concern basis of accounting.

The assessment of the appropriateness of the collective competence and capabilities of the engagement team included consideration of the engagements team's knowledge of the industry in which the client operates in and understanding of, and practical experience with, audit engagements of a similar nature and complexity through appropriate training and participation.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment.

Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

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

Use of our report

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

Aled Roberts (Senior Statutory Auditor)

for and on behalf of Salisbury & Company Business Solutions Limited

Statutory Auditors

Chartered Accountants

Irish Square

Upper Denbigh Road

St Asaph

Denbighshire

LL17 0RN

28 August 2026

TURNOVER

3

7,360,519

12,941,379

Cost of sales

(5,813,458

)

(11,008,074

)

GROSS PROFIT

1,547,061

1,933,305

Administrative expenses

(1,227,000

)

(1,230,221

)

OPERATING PROFIT

5

320,061

703,084

Interest receivable and similar income

18,246

25,990

338,307

729,074

Interest payable and similar expenses

6

(2,589

)

(5,666

)

PROFIT BEFORE TAXATION

335,718

723,408

Tax on profit

7

229,277

(170,947

)

PROFIT FOR THE FINANCIAL YEAR

564,995

552,461

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

564,995

552,461

FIXED ASSETS

Tangible assets

9

51,353

63,387

CURRENT ASSETS

Stock and work in progress

10

237,165

119,785

Debtors

11

1,863,842

2,997,142

Cash at bank and in hand

2,215,725

1,922,380

4,316,732

5,039,307

CREDITORS

Amounts falling due within one year

12

1,552,671

2,388,944

NET CURRENT ASSETS

2,764,061

2,650,363

TOTAL ASSETS LESS CURRENT LIABILITIES

2,815,414

2,713,750

CREDITORS

Amounts falling due after more than one year

13

(16,196

)

(39,518

)

PROVISIONS FOR LIABILITIES

16

(12,838

)

(15,847

)

NET ASSETS

2,786,380

2,658,385

CAPITAL AND RESERVES

Called up share capital

17

10,030

10,030

Retained earnings

18

2,776,350

2,648,355

SHAREHOLDERS' FUNDS

2,786,380

2,658,385

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:

Mrs B L Griffin - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 December 2023

10,030

2,631,863

2,641,893

Changes in equity

Dividends

-

(535,969

)

(535,969

)

Total comprehensive income

-

552,461

552,461

Balance at 30 November 2024

10,030

2,648,355

2,658,385

Changes in equity

Dividends

-

(437,000

)

(437,000

)

Total comprehensive income

-

564,995

564,995

Balance at 30 November 2025

10,030

2,776,350

2,786,380

Cash flows from operating activities

Cash generated from operations

1

626,631

128,261

Interest paid

(2,589

)

(5,666

)

Tax paid

115,897

(86,114

)

Net cash from operating activities

739,939

36,481

Cash flows from investing activities

Purchase of tangible fixed assets

(6,180

)

-

Interest received

18,246

25,990

Net cash from investing activities

12,066

25,990

Cash flows from financing activities

Capital repayments in year

(22,205

)

(21,141

)

Amount introduced by directors

437,001

482,001

Amount withdrawn by directors

(436,456

)

(481,629

)

Equity dividends paid

(437,000

)

(535,969

)

Net cash from financing activities

(458,660

)

(556,738

)

Increase/(decrease) in cash and cash equivalents

293,345

(494,267

)

Cash and cash equivalents at beginning of year

2

1,922,380

2,416,647

Cash and cash equivalents at end of year

2

2,215,725

1,922,380

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

2025

2024

£

£

Profit before taxation

335,718

723,408

Depreciation charges

18,215

17,288

Finance costs

2,589

5,666

Finance income

(18,246

)

(25,990

)

338,276

720,372

Increase in stock and work in progress

(117,380

)

(74,908

)

Decrease/(increase) in trade and other debtors

1,171,039

(814,479

)

(Decrease)/increase in trade and other creditors

(765,304

)

297,276

Cash generated from operations

626,631

128,261

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 30 November 2025

30/11/25

1/12/24

£

£

Cash and cash equivalents

2,215,725

1,922,380

Year ended 30 November 2024

30/11/24

1/12/23

£

£

Cash and cash equivalents

1,922,380

2,416,647

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/12/24

Cash flow

At 30/11/25

£

£

£

Net cash

Cash at bank and in hand

1,922,380

293,345

2,215,725

1,922,380

293,345

2,215,725

Debt

Finance leases

(61,723

)

22,205

(39,518

)

(61,723

)

22,205

(39,518

)

Total

1,860,657

315,550

2,176,207

1.	STATUTORY INFORMATION

Evadx 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 presentational and function currency of these financial statements is pound sterling. Monetary amounts in these financial statements are rounded to the nearest £.

Significant judgements and estimates

Estimates and judgments are continually evaluated and are based on historical experience and other factors,

including expectations of future events that are believed to be reasonable under the circumstances.

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will by definition, seldom equal the related actual results. In the opinion of the directors there are no estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

The estimates and judgements which have significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:

Work in Progress

Determining the valuation of construction and development contracts requires judgement regarding the stage of completion of contracts at the year end. The judgements are based on the work that has been completed and work that has already been agreed and billed.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

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.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing sales raised to date against costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliable, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

15% on cost

Stocks

Stock and work in progress and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stock and work in progress to their present location and condition.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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 year 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.

Long-term contracts

Profit on long-term contracts is recognised as the work is carried out if the financial outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the year end, by recording turnover and related contract costs as contract activity progress.

Contract costs are recognised as the higher of actual cost to date or costs as a proportion of final costs, using the reference of turnover to date as a proportion of final turnover.

Revenue derived from variations on contracts are recognised only when they have been accepted by the customer.

Full provision is made for losses on all contracts in the year in which they are first foreseen.

Hire purchase and 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 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.

Debtors

Short term debtors are measured at transaction price, less any impairment.

Creditors

Short term trade creditors are measured at the transaction price. Other financial liabilities, including loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost.

Provisions for liabilities

Provisions are recognised when the company has a present obligation (legal or constructive) as a result of a past event, it is probable the company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

Retentions

Retention recognition policy follows that of BIM51520 - include retentions within turnover, provide for the

estimated cost of remedial work, and make provision for any debt impairment.

3.

TURNOVER

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

All turnover arose within the United Kingdom.

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

1,314,600

1,294,295

Social security costs

149,267

125,527

Other pension costs

102,001

103,379

1,565,868

1,523,201

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

2025

2024

Directors

3

3

Management and admin

11

11

Workshop and site crew

27

29

41

43

2025

2024

£

£

Directors' remuneration

26,364

26,364

2025

2024

£

£

Director pension contributions

72,000

66,000

5.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

£

£

Hire of plant and machinery

469,833

702,005

Other operating leases

61,505

35,553

Depreciation - owned assets

18,214

17,288

Auditors' remuneration

12,550

12,500

Auditors' remuneration for non audit work

11,630

4,522

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank loan interest

2,539

3,602

Other interest

50

2,064

2,589

5,666

7.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the profit for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

-

175,269

R&D tax credit

(226,268

)

-

Total current tax

(226,268

)

175,269

Deferred tax

(3,009

)

(4,322

)

Tax on profit

(229,277

)

170,947

Reconciliation of total tax (credit)/charge included in profit and loss

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

2025

2024

£

£

Profit before tax

335,718

723,408

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

83,930

180,852

Effects of:

Depreciation in excess of capital allowances

3,009

4,322

R&D tax credit

(313,207

)

-

Group relief

-

(9,905

)

Movement on deferred tax

(3,009

)

(4,322

)

Total tax (credit)/charge

(229,277

)

170,947

8.

DIVIDENDS

2025

2024

£

£

Ordinary A shares of £1 each

Interim

-

53,969

Ordinary B shares of £1 each

Interim

119,000

144,000

Ordinary C shares of £1 each

Interim

132,000

162,000

Ordinary D shares of £1 each

Interim

186,000

176,000

437,000

535,969