REGISTERED NUMBER: SC104349 (Scotland)

Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 30 November 2025

for

James Paterson & Sons

(Plumbing & Heating) Limited

Page

Strategic Report

1

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

14

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

REVIEW OF BUSINESS

The directors would like to report a successful period for the company. Turnover has been generated of £9,382,937 (17 months ending 30 November 2024: £15,644,142) with profits before tax achieved of £184,953 (17 months ending 30 November 2024: £268,955).

At the year-end the company had shareholders' funds of £2,552,644 (2024: £2,475,139) including distributable profits of £2,552,544 (2024: £2,475,039). The company has net current assets of £2,310,977 (2024: £2,244,171) and has cash in the bank of £1,133,363 (2024: £1,279,498).

The directors believe that the company is in a strong position to build on this year's results.

PRINCIPAL RISKS AND UNCERTAINTIES

Financial Risks

Unforeseen costs: Construction projects are prone to unexpected expenses due to changes in design, material price fluctuations, unforeseen site conditions, and weather-related delays.

Economic downturns: Economic instability and market fluctuations can impact project viability and profitability.

Payment disputes: Disagreements over payments can disrupt cash flow and project timelines.

Funding shortages: Difficulty securing funding can delay or halt construction projects.

Operational Risks

Design errors: Poorly designed plans can lead to rework and delays.

Subcontractor default: Unreliable subcontractors can disrupt project workflow.

Supply chain issues: Delays in material delivery or shortages can halt construction.

Poor project management: Inefficient project management can lead to delays, cost overruns, and quality issues.

External Risks

Economic uncertainty: Factors like instability in the wider economy , and changes in interest rates can introduce volatility in the price of materials

Regulatory changes: New regulations or standards can affect construction methods and timelines.

Public objections: Opposition to projects can lead to delays or project abandonment.

Natural disasters: Unforeseen natural events can damage properties and disrupt construction.

Health and Safety Risks

Hazardous work environment: Building sites are inherently dangerous, with risks including working at height, heavy lifting, and exposure to hazardous materials like asbestos.

Accidents and injuries: Injuries on construction sites can lead to legal liabilities and financial losses.

Legal and Regulatory Risks

Contract disputes: Disagreements over contract terms and scope can lead to legal action.

Non-compliance with regulations: Failure to comply with building codes or environmental regulations can result in fines and legal penalties.

Mitigating Risks

Thorough risk assessment: Conducting comprehensive risk assessments and developing mitigation plans.

Effective communication and collaboration: Clear communication between stakeholders and strong collaboration can help identify and manage risks early on.

Contingency planning: Having backup plans in place for potential disruptions.

Continuous monitoring and review: Regularly monitoring and reviewing projects to identify and address emerging risk.

ON BEHALF OF THE BOARD:

L J Paterson - 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 the provision of plumbing and heating contracting services to house builders.

DIVIDENDS

The total distribution of dividends for the period ended 30 November 2025 will be £Nil (2024:- £97,000).

DIRECTORS

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

L J Paterson

B R Paterson

P E McPhail

B T Paterson

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). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

Drummond Laurie CA are deemed to be reappointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:

L J Paterson - Director

27 August 2026

Opinion

We have audited the financial statements of James Paterson & Sons (Plumbing & Heating) 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 three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities outlined above to detect material misstatements in respect of irregularities, including fraud.

Based on our understanding of the company, we identified that the principal risks of non-compliance with laws and regulations related to fraudulent manipulation of the financial statements, including the risk of override of controls, to reduce profits and tax liabilities. We determined that the most likely method of manipulation would be the posting of inappropriate journal entries. Audit procedures performed by the audit engagement team consisted of a review of large and unusual journal entries, challenging assumptions and judgements made by management in significant accounting estimates, discussions with management related to known or suspected instances of non-compliance with laws and regulations, review of Board minutes where available, and an evaluation of management controls designed to prevent and detect irregularities.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. 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 by, for example, forgery or intentional misrepresentations or through collusion.

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.

Craig Clinton (Senior Statutory Auditor)

for and on behalf of Drummond Laurie CA

Statutory Auditor

Unit 5

Gateway Business Park

Beancross Road

Grangemouth

FK3 8WX

31 August 2026

TURNOVER

3

9,382,937

15,644,142

Cost of sales

(7,407,043

)

(12,964,412

)

GROSS PROFIT

1,975,894

2,679,730

Administrative expenses

(1,789,114

)

(2,525,984

)

186,780

153,746

Gain/loss on revaluation of investments

(10,494

)

86,609

OPERATING PROFIT

5

176,286

240,355

Interest receivable and similar income

17,972

41,695

194,258

282,050

Interest payable and similar expenses

6

(9,305

)

(13,095

)

PROFIT BEFORE TAXATION

184,953

268,955

Tax on profit

7

(107,448

)

(190,104

)

PROFIT FOR THE FINANCIAL YEAR

77,505

78,851

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

77,505

78,851

FIXED ASSETS

Tangible assets

9

367,167

380,415

CURRENT ASSETS

Stocks

10

136,101

124,955

Debtors

11

1,851,374

1,446,079

Investments

12

712,020

690,573

Cash at bank

1,133,363

1,279,498

3,832,858

3,541,105

CREDITORS

Amounts falling due within one year

13

(1,521,881

)

(1,296,934

)

NET CURRENT ASSETS

2,310,977

2,244,171

TOTAL ASSETS LESS CURRENT LIABILITIES

2,678,144

2,624,586

CREDITORS

Amounts falling due after more than one year

14

(6,077

)

(35,122

)

PROVISIONS FOR LIABILITIES

17

(119,423

)

(114,325

)

NET ASSETS

2,552,644

2,475,139

CAPITAL AND RESERVES

Called up share capital

18

97

97

Capital redemption reserve

19

3

3

Retained earnings

19

2,552,544

2,475,039

SHAREHOLDERS' FUNDS

2,552,644

2,475,139

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:

L J Paterson - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 June 2023

97

2,493,188

3

2,493,288

Changes in equity

Dividends

-

(97,000

)

-

(97,000

)

Total comprehensive income

-

78,851

-

78,851

Balance at 30 November 2024

97

2,475,039

3

2,475,139

Changes in equity

Total comprehensive income

-

77,505

-

77,505

Balance at 30 November 2025

97

2,552,544

3

2,552,644

Cash flows from operating activities

Cash generated from operations

1

232,776

772,635

Interest paid

(506

)

(542

)

Interest element of hire purchase payments paid

(8,799

)

(12,553

)

Tax paid

(148,945

)

(82,977

)

Net cash from operating activities

74,526

676,563

Cash flows from investing activities

Purchase of tangible fixed assets

(120,003

)

(33,750

)

Sale of tangible fixed assets

11,250

53,971

Purchase of current asset investments

(32,320

)

(99,220

)

Sale of current asset investments

-

88,973

Interest received

17,972

41,695

Net cash from investing activities

(123,101

)

51,669

Cash flows from financing activities

Loan repayments in year

-

(25,278

)

Capital repayments in year

(74,276

)

(202,986

)

Amount introduced by directors

-

4,500

Amount withdrawn by directors

(23,284

)

-

Equity dividends paid

-

(97,000

)

Net cash from financing activities

(97,560

)

(320,764

)

(Decrease)/increase in cash and cash equivalents

(146,135

)

407,468

Cash and cash equivalents at beginning of year

2

1,279,498

872,030

Cash and cash equivalents at end of year

2

1,133,363

1,279,498

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

Period

1.6.23

Year Ended

to

30.11.25

30.11.24

£

£

Profit before taxation

184,953

268,955

Depreciation charges

107,503

214,257

Loss/(profit) on disposal of fixed assets

14,497

(33,201

)

Loss/(gain) on revaluation of fixed assets

10,494

(86,609

)

Finance costs

9,305

13,095

Finance income

(17,972

)

(41,695

)

308,780

334,802

(Increase)/decrease in stocks

(11,146

)

79,640

(Increase)/decrease in trade and other debtors

(386,132

)

659,293

Increase/(decrease) in trade and other creditors

321,274

(301,100

)

Cash generated from operations

232,776

772,635

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

1,133,363

1,279,498

Period ended 30 November 2024

30.11.24

1.6.23

£

£

Cash and cash equivalents

1,279,498

872,030

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.12.24

Cash flow

At 30.11.25

£

£

£

Net cash

Cash at bank

1,279,498

(146,135

)

1,133,363

1,279,498

(146,135

)

1,133,363

Liquid resources

Current asset investments

690,573

21,447

712,020

690,573

21,447

712,020

Debt

Finance leases

(109,398

)

74,276

(35,122

)

(109,398

)

74,276

(35,122

)

Total

1,860,673

(50,412

)

1,810,261

1.	STATUTORY INFORMATION

James Paterson & Sons (Plumbing & Heating) Limited is a private company, limited by shares, domiciled in Scotland, registration number SC104349. The registered office is Fire Station, Glebe Street, Denny, FK6 6AA.

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.

Turnover

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.

The percentage of completion method is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on the nature, provided it is probable they will be recovered.

Tangible fixed assets and depreciation

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Motor vehicles

-

25% on reducing balance

Tangible fixed assets are stated at cost less depreciation. Cost represent purchase price together with any incidental costs of acquisition.

The directors have considered the residual value of all tangible fixed assets to be immaterial and therefore all tangible fixed assets are depreciated to nil value.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost is represented by purchase price.

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.

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 the shorter.

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

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

Pension costs and other post-retirement benefits

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

Provisions

Provisions are recognised when the company has a legal or constructive obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation, and the amount has been reliably estimated. Provisions are not recognised for future operating losses. Provisions are discounted where the time value of money is material.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

Cash and cash equivalents

Cash and cash equivalents include cash at bank and in hand and highly liquid interest-bearing securities with maturities of three months or less. In the cash-flow statement, cash and cash equivalents are shown net of bank overdrafts, which are included as current borrowings in liabilities on the balance sheet.

3.

TURNOVER

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

An analysis of turnover by geographical market is given below:

Period

1.6.23

Year Ended

to

30.11.25

30.11.24

£

£

United Kingdom

9,382,937

15,644,142

9,382,937

15,644,142

4.	EMPLOYEES AND DIRECTORS

Period

1.6.23

Year Ended

to

30.11.25

30.11.24

£

£

Wages and salaries

2,850,372

4,700,864

Social security costs

337,077

489,725

Other pension costs

202,874

301,792

3,390,323

5,492,381

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

Period

1.6.23

Year Ended

to

30.11.25

30.11.24

Employees

62

68

Period

1.6.23

Year Ended

to

30.11.25

30.11.24

£

£

Directors' remuneration

403,100

525,699

Directors' pension contributions to money purchase schemes

110,278

95,497

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

Money purchase schemes

4

4

Information regarding the highest paid director is as follows:

Period

1.6.23

Year Ended

to

30.11.25

30.11.24

£

£

Emoluments etc

126,935

161,793

Pension contributions to money purchase schemes

62,400

52,400

5.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

Period

1.6.23

Year Ended

to

30.11.25

30.11.24

£

£

Other operating leases

15,000

23,375

Depreciation - owned assets

61,510

90,674

Depreciation - assets on hire purchase contracts

45,994

123,583

Loss/(profit) on disposal of fixed assets

14,497

(33,201

)

Auditors' remuneration

8,035

7,500

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

Period

1.6.23

Year Ended

to

30.11.25

30.11.24

£

£

Bank interest

-

454

Bank loan interest

-

88

Corporation tax interest

506

-

Hire purchase

8,799

12,553

9,305

13,095

7.

TAXATION

Analysis of the tax charge

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

Period

1.6.23

Year Ended

to

30.11.25

30.11.24

£

£

Current tax:

UK corporation tax

102,350

148,946

Deferred tax

5,098

41,158

Tax on profit

107,448

190,104

UK corporation tax has been charged at 25% .

Reconciliation of total tax charge included in profit and loss

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

Period

1.6.23

Year Ended

to

30.11.25

30.11.24

£

£

Profit before tax

184,953

268,955

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

46,238

67,239

Effects of:

Expenses not deductible for tax purposes

66,786

105,573

Income not taxable for tax purposes

(7,081

)

(26,103

)

Capital allowances in excess of depreciation

(3,593

)

-

Depreciation in excess of capital allowances

-

2,237

Deferred tax movement

5,098

41,158

Total tax charge

107,448

190,104

8.

DIVIDENDS

Period

1.6.23

Year Ended

to

30.11.25

30.11.24

£

£

Ordinary shares of £1 each

Final

-

97,000