ACCOUNTS - Final Accounts preparation

Operating profit

The operating profit is stated after charging:

Registered number: 00273400

LONGCLIFFE QUARRIES LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

LONGCLIFFE QUARRIES LIMITED

COMPANY INFORMATION

Directors	R J G Shields
	J F G Shields
	P M Boustead
	I McDonald
	D E Mooney
	O G Stephenson
	C Wainwright
	N J H Gonzalez (appointed 18 September 2025)


Registered number	00273400


Registered office	Longcliffe
	Brassington
	Matlock
	Derbyshire
	DE4 4HN


Independent auditor	Shorts
	Chartered Accountants & Statutory Auditor
	Cedar House
	63 Napier Street
	Sheffield
	South Yorkshire
	S11 8HA

LONGCLIFFE QUARRIES LIMITED

CONTENTS

	Page
Strategic Report	1 - 3
Directors' Report	4 - 5
Independent Auditor's Report	6 - 9
Statement of Comprehensive Income	10
Balance Sheet	11 - 12
Statement of Changes in Equity	13
Notes to the Financial Statements	14 - 37

LONGCLIFFE QUARRIES LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2026

Introduction

The directors present their Strategic Report for Longcliffe Quarries Limited ('the Company') for the year ended 31 March 2026.

Principal activity

The principal activity of the Company has continued to be the extraction of minerals, producing high purity calcium carbonate products for industrial applications.

Business review

The Company had another profitable year, recording profits on ordinary activities before taxation of £7,662,505 (2025- £6,588,990).

Trading conditions, however, continue to be testing with inflation, recruitment and resource availability all presenting challenges. The Company’s balance sheet strength and favourable cash position will ensure these challenges are overcome. The Directors are confident of delivering another profitable result in 2027.

The progress of the business has continued to be supported by significant investment in capital expenditure.

Principal risks and uncertainties

Owing to the nature of the Company's activities and the transport fleet operated, the volatility of energy prices is a risk to the business. The Company manages this risk by entering into supply contracts at the most opportune time, although fuel prices are subject to changes and in the period, there has been significant turbulence in these markets.

The Company has exposure to interest rate fluctuations with bank borrowings being based on variable rates. The Directors consider that the risk of material impact as a result of a change in rates is small and can be accommodated through cash flows arising from forecast performance. The Company's banking facilities have been renewed and are considered adequate going forward. Short-term flexibility is achieved by overdraft facilities if required.

Credit risk arises on financial instruments such as trade debtors. Policies and procedures exist to ensure that the trade debtors have an appropriate credit history and make payments in accordance with terms. Debtors are stated net of provision.

From the Balance Sheet date to the date of this report the Directors have considered the trading position of the Company, along with future cash flow forecasts, and consider that the Company will be able to operate within the existing bank facility.

The directors have renewed the existing facilities for the Group which provide low-cost funding and sufficient working capital to support the trading expectations going forward.

Page 1

LONGCLIFFE QUARRIES LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2026

Financial and non-financial key performance indicators

The directors use a number of key performance indicators to monitor performance of the business which include the following:

Gross margin: 38.9% (2025: 37.4%)

Turnover by employee: £260,000 (2025: £279,000)

Lost time injury events: 1 (2025: 3)

Accident frequency rate (number of lost time injuries per 1m hours worked): 0.22 (2025: 0.65)

Voluntary staff turnover: 3.5% (2025: 6.7%)

Section 172 Statement - Directors' statement of compliance with duty to promote the success of the Company

Longcliffe Quarries: Stakeholder Engagement

As the Board of Directors at Longcliffe Quarries, we have a legal responsibility under section 172 of the Companies Act 2006 to act in the way we consider, in good faith, would be most likely to promote the Company’s success for the benefit of its members, employees, shareholders and partners as a whole, and to have regard to the long-term effect of our decisions on the Company and its stakeholders. This statement addresses the ways in which we as a Board satisfy this responsibility.

Promoting the Company’s success for its members

Longcliffe Group was established in 1927 by the Shields family and continues to be owned and operated by them today. We are proud that over almost a century we have provided sustainable employment, training and income to the employees, members and shareholders.

The Longcliffe Group comprises businesses involved predominantly in quarrying but also in renewable energy. The main quarrying business is one of the largest independent quarrying companies in the country. At the heart of the Group is our focus on providing a quality product, providing added value solutions to our customers and the continued acquisition of minerals and planning to sustain the quarry processing and operations.

Engaging with stakeholders

Our key stakeholders, and the ways in which we engage with them, are as follows:

Our employees

We rely upon a specialist highly skilled workforce to run our quarries and distribute our product. Our businesses are renowned for high levels of customer care and satisfaction, and this can only be achieved with the involvement of a content and dedicated workforce.

Page 2

LONGCLIFFE QUARRIES LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2026

Recruitment and retention of staff at all levels is therefore critical to our success. We engage with our workforce by:

∙Setting remuneration at market-leading rates and rewarding performance with bonuses at all levels in all businesses

∙Providing structured training and development support

∙Providing apprenticeship training where appropriate

∙Involving all employees in regular business trading updates delivered in person by the Group Managing Director

∙Issuing merit awards for worthwhile acts and ideas

∙Providing a comprehensive package of other benefits including subsided healthcare, employee assistance programmes and employee events

Our customers and suppliers

We provide high quality goods and services to our customers at the right time and at the right price. We pride ourselves on being always available to our customers to respond to their needs. Our highly trained and experienced field-based employees maintain regular ongoing relationships with our customers to ensure a detailed understanding of their requirements.

Over nearly 100 years enduring relationships have also been established with our suppliers who are, where possible, sourced from the local area. Longcliffe Quarries has a reputation as a fair and transparent business partner.

Our community

As a family run company with roots in the local area, we have through our Longcliffe Community Fund invested heavily with charitable donations and support programmes. We aid the local Parish Councils and actively support local and grass roots businesses. Sponsorships are also made to local schools and sports teams. We also engage with our local schools by hosting educational trips to the quarries and staff undertake visits to schools specifically regarding road safety.

Our planet

The quarrying industry plays a vital role in maintaining and improving biodiversity and Longcliffe is passionately committed to the protection of the environment. We always strive to be a good neighbour and our substantial investment in environmentally friendly measures will ensure a lasting legacy for the benefit of the future generations. We adopt the latest continuous improvement training, techniques, and technology through our Operational Excellence programme. Through setting targets for the reduction of energy consumption and carbon emissions, we aim to reduce our use of fossil fuels in our operations, primarily production and transport and through energy efficiency and seeking alternative renewable energy sources. This has led to an overall target of net zero carbon emissions to the weighbridge by 2030 (subject to upgrades on local power distribution infrastructure by transmission providers).

This report was approved by the board on 3 August 2026 and signed on its behalf.

N J H Gonzalez

Director

Page 3

LONGCLIFFE QUARRIES LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 MARCH 2026

The directors present their report and the financial statements for the year ended 31 March 2026.

Directors

The directors who served during the year were:

R J G Shields

J F G Shields

P M Boustead

I Gorbould (resigned 29 May 2025)

I McDonald

D E Mooney

O G Stephenson

C Wainwright

N J H Gonzalez (appointed 18 September 2025)

Results and dividends

The profit for the year, after taxation, amounted to £5,744,721 (2025 - £4,913,665).

Particulars of dividends are disclosed in note 12.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 for the Company's financial statements and then apply them consistently;

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

∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

∙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 to 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.

Page 4

LONGCLIFFE QUARRIES LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2026

Research and development activities

Research and development expenditure during the year has been concentrated on the development of new processes for value added limestone products.

Streamlined Carbon Energy Reporting ("SECR") exemption

The Company, as a qualifying entity, has taken advantage of the exemption from including its SECR requirements in these financial statements. The Company's UK greenhouse gas emissions and energy use data are included in the group SECR report of the company's immediate parent company, Longcliffe Group Limited.

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Auditor

The auditor, Shorts, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 3 August 2026 and signed on its behalf.

N J H Gonzalez

Director

Page 5

LONGCLIFFE QUARRIES LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LONGCLIFFE QUARRIES LIMITED

Opinion

We have audited the financial statements of Longcliffe Quarries Limited (the 'Company') for the year ended 31 March 2026, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

∙give a true and fair view of the state of the Company's affairs as at 31 March 2026 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 Auditor's 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 United Kingdom, including the Financial Reporting Council'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.

Page 6

LONGCLIFFE QUARRIES LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LONGCLIFFE QUARRIES LIMITED (CONTINUED)

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.

Opinion 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Strategic Report and the Directors' Report 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 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:

∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

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

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

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

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page 4, 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 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.

Page 7

LONGCLIFFE QUARRIES LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LONGCLIFFE QUARRIES LIMITED (CONTINUED)

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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

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

∙through discussions with the directors and other management and from our commercial knowledge, we identified the laws and regulations applicable to the Company and considered these while planning our audit work

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

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

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

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

∙performed analytical procedures to identify any unusual or unexpected relationships;

∙reviewed the general ledger entries during the year to identify unusual transactions;

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

∙investigated the rationale behind significant or unusual transactions; and

∙performed substantive testing on a random sample of expenditure and agreed income to external reports.

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

∙agreeing financial statement disclosures to underlying supporting documentation

∙reading the minutes of meetings of those charged with governance

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

∙considering relationships with HMRC and other relevant regulators; and

∙reviewing legal and professional costs to identify any indicators of litigation.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

Page 8

LONGCLIFFE QUARRIES LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LONGCLIFFE QUARRIES LIMITED (CONTINUED)

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

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

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 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 Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Irvine (Senior Statutory Auditor)

for and on behalf of

Shorts

Chartered Accountants

Statutory Auditor

Cedar House

63 Napier Street

Sheffield

South Yorkshire

S11 8HA

3 August 2026

Page 9

LONGCLIFFE QUARRIES LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 MARCH 2026

	2026	2025
Note	£	£


Turnover	4	51,415,803	52,189,878
Cost of sales		(31,429,416)	(32,687,299)
Gross profit		19,986,387	19,502,579
Administrative expenses		(12,781,432)	(12,370,063)
Other operating income	5	498,772	616,591
Fair value movements		245,987	(857,323)
Operating profit	6	7,949,714	6,891,784
Income from shares in group undertakings		411,054	500,000
Interest payable and similar expenses	10	(698,263)	(802,794)
Profit before tax		7,662,505	6,588,990
Tax on profit	11	(1,917,784)	(1,675,325)
Profit for the financial year		5,744,721	4,913,665

Other comprehensive income for the year
Loss / (gain) on pension assets in excess of interest	410,000	(1,523,000)
Experience losses / (gains) on pension liabilities	(633,000)	50,000
Actuarial losses / (gains) from changes to demographic assumptions	(36,000)	38,000
Actuarial losses / (gains) from changes to financial assumptions	278,000	1,857,000
Movement of deferred tax relating to pension deficit	276,000	(105,500)
Loss from change in effect of asset ceiling	(1,123,000)	-
Other comprehensive income for the year	(828,000)	316,500
Total comprehensive income for the year	4,916,721	5,230,165

The notes on pages 14 to 37 form part of these financial statements.

Page 10

LONGCLIFFE QUARRIES LIMITED

REGISTERED NUMBER: 00273400

BALANCE SHEET

AS AT 31 MARCH 2026

		2026		2025
Note		£		£

Fixed assets
Tangible assets	13		25,685,337		18,089,616
Investments	14		3,160,152		3,160,152
Investment property	15		15,802,500		15,283,500
			44,647,989		36,533,268
Current assets
Stocks	16	325,276		336,791
Debtors: amounts falling due after more than one year	17	-		45,750
Debtors: amounts falling due within one year	17	11,042,705		12,170,103
Cash at bank and in hand		4,721,675		5,659,658
		16,089,656		18,212,302
Creditors: amounts falling due within one year	18	(11,745,962)		(13,607,721)
Net current assets			4,343,694		4,604,581
Total assets less current liabilities			48,991,683		41,137,849
Creditors: amounts falling due after more than one year	19		(12,451,661)		(9,250,509)
Provisions for liabilities
Deferred tax	22	(3,823,003)		(2,259,827)
			(3,823,003)		(2,259,827)
Pension liability/asset			-		(183,000)
Net assets			32,717,019		29,444,513

Capital and reserves
Called up share capital		145,474	145,474
Share premium account	23	234,375	234,375
Capital redemption reserve	23	16,493	16,493
Profit and loss account	23	32,320,677	29,048,171
		32,717,019	29,444,513

Page 11

LONGCLIFFE QUARRIES LIMITED

REGISTERED NUMBER: 00273400

BALANCE SHEET (CONTINUED)

AS AT 31 MARCH 2026

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 3 August 2026.

R J G Shields	N J H Gonzalez
Director	Director

The notes on pages 14 to 37 form part of these financial statements.

Page 12

LONGCLIFFE QUARRIES LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2026

	Called up share capital	Share premium account	Capital redemption reserve	Profit and loss account	Total equity
	£	£	£	£	£
At 1 April 2024	145,474	234,375	16,493	25,067,988	25,464,330
Comprehensive income for the year
Profit for the year	-	-	-	4,913,665	4,913,665
Net actuarial gains on pension scheme	-	-	-	316,500	316,500
Total comprehensive income for the year	-	-	-	5,230,165	5,230,165
Dividends: Equity capital	-	-	-	(1,249,982)	(1,249,982)

At 1 April 2025	145,474	234,375	16,493	29,048,171	29,444,513
Comprehensive income for the year
Profit for the year	-	-	-	5,744,721	5,744,721
Net actuarial losses on pension scheme	-	-	-	(828,000)	(828,000)
Total comprehensive income for the year	-	-	-	4,916,721	4,916,721
Dividends: Equity capital	-	-	-	(1,644,215)	(1,644,215)
At 31 March 2026	145,474	234,375	16,493	32,320,677	32,717,019

The notes on pages 14 to 37 form part of these financial statements.

Page 13

LONGCLIFFE QUARRIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

1.	General information

Longcliffe Quarries Limited is a private company limited by shares and incorporated in England and Wales (registered number: 00273400). The registered office address is Longcliffe, Brassington, Matlock, Derbyshire, DE4 4HN. The principal activity of the business in the year remained that of quarrying activities.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland ('FRS 102') and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

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

∙the requirements of Section 7 Statement of Cash Flows;

∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);

∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;

∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Longcliffe Group Limited as at 31 March 2026 and these financial statements may be obtained from Companies House.

2.3

Going concern

The directors have prepared budgets and forecasts, based upon all information available, including potential extensions to planning permission, which demonstrate sufficient cash resources will be available to the Company to ensure it can meet its financial obligations as they fall due for the foreseeable future, this being the period covering at least twelve months from the date of approval of these financial statements, therefore, the financial statements continue to be prepared upon a going concern basis.

Page 14

LONGCLIFFE QUARRIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

2.Accounting policies (continued)

2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

2.5

Turnover recognition

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover is recognised at the point of delivery of goods.

2.6

Leased assets: the Company as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Page 15

LONGCLIFFE QUARRIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

2.Accounting policies (continued)

2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Defined benefit pension plan

The Company operates a defined benefit plan for certain employees. A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including but not limited to age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan.

The liability recognised in the Balance Sheet in respect of the defined benefit plan is the present value of the defined benefit obligation at the end of the balance sheet date less the fair value of plan assets at the balance sheet date (if any) out of which the obligations are to be settled.

The defined benefit obligation is calculated using the projected unit credit method. Annually the company engages independent actuaries to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating to the estimated period of the future payments ('discount rate').

The fair value of plan assets is measured in accordance with the FRS102 fair value hierarchy and in accordance with the Company's policy for similarly held assets. This includes the use of appropriate valuation techniques.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income. These amounts together with the return on plan assets, less amounts included in net interest, are disclosed as 'Remeasurement of net defined benefit liability'.

The cost of the defined benefit plan, recognised in profit or loss as employee costs, except where included in the cost of an asset, comprises:

a) the increase in net pension benefit liability arising from employee service during the period; and

b) the cost of plan introductions, benefit changes, curtailments and settlements.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is recognised in profit or loss as a 'finance expense'.

Page 16

LONGCLIFFE QUARRIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

2.Accounting policies (continued)

2.8

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.9

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 17

LONGCLIFFE QUARRIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

2.Accounting policies (continued)

2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property	-	20 - 50 years
Plant and machinery	-	3 - 15 years
Assets under construction	-	No depreciation charged until assets are available for use

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

2.12

Investment property

Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

2.14

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Page 18

LONGCLIFFE QUARRIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

2.Accounting policies (continued)

2.15

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.16

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.17

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

Page 19

LONGCLIFFE QUARRIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

2.Accounting policies (continued)

2.18

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

The Company is obliged to return the principal asset of the business to a condition specified by local planning law and permissions. A calculation has been made based on estimated costs to be incurred in the various stages of plant decommissioning and land remediation expected to be required in the future at the end of the life of the quarries. This provision will be built up each year based on the expected output of the quarries over their expected life.

2.19

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

3.	Judgements in applying accounting policies and key sources of estimation uncertainty

In preparing the financial statements, management are required to make estimates and assumptions which affect reported income, expenses, assets, liabilities and disclosure of contingent assets and liabilities. Use of available information and application of judgement are inherent in the formation of estimates, together with expectations of future events that are believed to be reasonable under the circumstances. Actual results in the future could differ from such estimates.

The key estimates used in the preparation of the financial statements are as follows:

The pension liability has been valued by an actuary in accordance with FRS 102. Key estimates applied in the valuation of the pension scheme include inflation, discount rate and mortality rates. Management consider the estimates applied by the actuary to be reasonable.

Estimates have been made in the calculation of the decomissioning provision of future costs to be incurred in the plant decommissioning and land remediation as well as the expected future output of the quarries.

Investment property is recognised at fair value, subject to property valuations which are in themselves an estimate by an external expert.

Similarly, the depreciation rates adopted for all classes of property, plant and equipment are an estimate based on management's best estimate of the use and longevity of the asset.

The carrying value of overage rights at historic cost is considered annually for impairment based on a valuation provided by management's external expert.

Page 20

LONGCLIFFE QUARRIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

Turnover

The whole of the turnover is attributable to the single business activity.

All turnover arose within the United Kingdom.

5.	Other operating income
		2026	2025
		£	£

Other operating income	261,677	415,183
Net rents receivable	237,095	201,408
	498,772	616,591

Depreciation charge on owned assets	1,556,493	1,453,685
Depreciation of assets held under hire purchase	707,967	719,498
Profit on sale of tangible assets	(56,676)	(302,789)
Other operating lease rentals	1,134,243	1,072,000
Defined contribution pension cost	723,789	768,468

7.	Auditor's remuneration
		2026	2025
		£	£

Fees payable to the Company's auditors for the audit of the Company's annual financial statements

32,000

30,600

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

Page 21

LONGCLIFFE QUARRIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

Wages and salaries	11,692,913	11,304,489
Social security costs	1,495,096	1,141,082
Cost of defined contribution pension schemes	723,790	768,467
	13,911,799	13,214,038

Other pension costs are charged in respect of the defined benefit pension scheme with £NIL (2025: £56,000) being recognised within the Statement of Comprehensive Income.

Other pension income is received in respect of the defined benefit pension scheme with £25,000 (2025: £NIL) being recognised within the Statement of Comprehensive Income.

Finance charges in respect of the defined benefit pension scheme are shown within Note 10, with actuarial movements, net of deferred tax, being shown within other comprehensive income.

The average monthly number of employees, including the directors, during the year was as follows:

	2026	2025
	No.	No.

Production, distribution and sales	107	102
Management and administrative	91	85

	198	187

Page 22

LONGCLIFFE QUARRIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

9.	Directors' remuneration
		2026	2025
		£	£

Directors' emoluments	1,908,612	2,364,217
Company contributions to defined contribution pension schemes	310,219	278,425
	2,218,831	2,642,642

	During the year retirement benefits were accruing to 6 directors (2025 - 6) in respect of defined contribution pension schemes.
	The highest paid director received remuneration of £642,266 (2025 - £956,296).
	The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2025 - £NIL).
	The value of the Company's contributions paid to a defined benefit pension scheme in respect of the highest paid director amounted to £NIL (2025 - £NIL).
	The total accrued pension provision of the highest paid director at 31 March 2026 amounted to £NIL (2025 - £NIL).

10.	Interest payable and similar expenses
		2026	2025
		£	£

Bank interest payable	568,930	602,721
Other loan interest payable	47,530	29,622
Finance leases and hire purchase contracts	106,803	114,451
Other interest relating to defined benefit pension scheme	(25,000)	56,000
	698,263	802,794

Page 23

LONGCLIFFE QUARRIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

Corporation tax
Current tax on profits for the year	231,419	1,265,287
Adjustments in respect of previous periods	(198,561)	17,324

Total current tax	32,858	1,282,611

Deferred tax
Origination and reversal of timing differences	1,662,047	392,779
Adjustments in respect of prior periods	222,879	(65)
Total deferred tax	1,884,926	392,714


	Tax on profit	1,917,784	1,675,325

Profit on ordinary activities before tax

7,662,505

6,588,989

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2025 - 25%)	1,915,626	1,647,247
Effects of:
Expenses not deductible for tax purposes	47,962	331,330
Capital allowances for year in excess of depreciation	30,667	25,058
Adjustments to tax charge in respect of prior periods	24,318	17,259
Non-taxable group income	(102,764)	(125,000)
Other differences leading to a (decrease) / increase in the tax charge	1,975	(220,569)
Total tax charge for the year	1,917,784	1,675,325

Page 24

LONGCLIFFE QUARRIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

12.	Dividends
		2026	2025
		£	£

Ordinary dividends

1,644,215

1,249,982

13.	Tangible fixed assets

	Freehold property	Plant and machinery	Assets under construction	Total
	£	£	£	£
Cost
At 1 April 2025	5,609,491	48,993,647	-	54,603,138
Additions	-	1,559,403	8,308,080	9,867,483
Disposals	-	(197,700)	-	(197,700)
Transfers between classes	-	(206,352)	206,352	-
At 31 March 2026	5,609,491	50,148,998	8,514,432	64,272,921
Depreciation
At 1 April 2025	815,463	35,698,059	-	36,513,522
Charge for the year	11,768	2,252,692	-	2,264,460
Disposals	-	(190,398)	-	(190,398)
At 31 March 2026	827,231	37,760,353	-	38,587,584
Net book value
At 31 March 2026	4,782,260	12,388,645	8,514,432	25,685,337
At 31 March 2025	4,794,028	13,295,588	-	18,089,616

Freehold property includes land other than that which is currently being quarried amounting to £1,923,034 (2025: £1,923,034).

The net book value of assets held under finance leases or hire purchase contracts, included above within plant and machinery, was £5,078,675 (2025: £3,867,364).

Depreciation of £707,968 (2025: £719,498) was charged during the year on assets held under finance leases or hire purchase contracts.

Page 25

LONGCLIFFE QUARRIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

14.	Fixed asset investments

	Investments in subsidiary companies	Other fixed asset investments	Total
	£	£	£
Cost or valuation
At 1 April 2025	1,002	3,159,150	3,160,152
At 31 March 2026	1,002	3,159,150	3,160,152

Subsidiary undertakings
The following were subsidiary undertakings of the Company:
Name	Principal activity	Class of shares	Holding

Avochie Granite Co. Limited	Dormant	Ordinary	100%
Longcliffe Lime Company Limited	Dormant	Ordinary	100%
Longcliffe Limited	Dormant	Ordinary	100%
Longcliffe Industrial Minerals Limited	Dormant	Ordinary	100%
Ryder Point Wind Limited	Wind farming	Ordinary	100%

The other fixed asset investments relate to overage rights on land acquired from a director in previous years. The valuation of these overage rights is considered annually by an independent firm of chartered surveyors to ensure there is no impairment with this asset confirmed to be held at cost to the Company.

Page 26

LONGCLIFFE QUARRIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

15.	Investment property

		Freehold investment property
		£
	Valuation
	At 1 April 2025	15,283,500
	Additions at cost	273,013
	Surplus on revaluation	245,987
	At 31 March 2026	15,802,500

The 2026 valuations were made by Cauldwell & Co, DM Hall Chartered Surveyors, Mather Jamie Limited and Salloway Property Consultants, on an open market value basis.

If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:
	2026	2025
	£	£

Historic cost

13,402,084

13,129,072

16.	Stocks
		2026	2025
		£	£

	Finished goods and goods for resale	325,276	336,791

Page 27

LONGCLIFFE QUARRIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

17.	Debtors
		2026	2025
		£	£

Due after more than one year
Deferred tax asset	-	45,750
	-	45,750

					2026	2025
					£	£

Due within one year
Trade debtors	9,477,563	10,203,622
Amounts owed by group undertakings	11,794	11,794
Other debtors	397,185	421,900
Prepayments and accrued income	1,156,163	1,532,787
	11,042,705	12,170,103

18.	Creditors: Amounts falling due within one year
		2026	2025
		£	£

Bank loans	941,515	868,422
Trade creditors	5,752,289	5,936,194
Amounts owed to group undertakings	6,212	6,212
Corporation tax	(287,507)	809,952
Other taxation and social security	2,023,625	2,023,597
Obligations under finance lease and hire purchase contracts	733,141	1,026,883
Other creditors	89,966	158,373
Accruals and deferred income	2,486,721	2,778,088
	11,745,962	13,607,721

Page 28

LONGCLIFFE QUARRIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

19.	Creditors: Amounts falling due after more than one year
		2026	2025
		£	£

Bank loans	11,906,252	7,971,959
Net obligations under finance leases and hire purchase contracts	545,409	1,278,550
	12,451,661	9,250,509

Secured loans

A bank loan is secured by a fixed and floating charge on the relevant freehold properties. The loan is repayable over a 15 year period with interest charged at 1.75% p.a. above base rate.

A bank loan is secured over land and has interest charged at 1.6% over base rate.

Obligations under finance leases and hire purchase contracts are secured by related assets and bear finance charges at normal commercial rates.

Amounts falling due within one year
Bank loans	941,515	868,422
Amounts falling due 1-2 years
Bank loans	1,745,539	868,422
Amounts falling due 2-5 years
Bank loans	5,236,619	2,605,265
Amounts falling due after more than 5 years
Bank loans	4,924,094	4,498,272
	12,847,767	8,840,381

Page 29

LONGCLIFFE QUARRIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

Within one year	733,141	1,026,883
Between 1-5 years	353,138	733,141
Over 5 years	192,271	545,409
	1,278,550	2,305,433

22.	Deferred taxation

	2026	2025
	£	£

At beginning of year	(2,214,077)	(1,715,863)
Charged to profit or loss	(1,884,926)	(392,714)
Charged to other comprehensive income	276,000	(105,500)
At end of year	(3,823,003)	(2,214,077)

The deferred tax balance is made up as follows:
	2026	2025
	£	£

Revaluation surplus	(353,610)	(292,114)
Excess of taxation allowances over depreciation of fixed assets	(3,343,851)	(1,967,713)
Pension deficit	(133)	45,750
Short term timing differences	(125,409)	-
	(3,823,003)	(2,214,077)

Comprising:
Asset - due after one year	-	45,750
Liability	(3,823,003)	(2,259,827)
	(3,823,003)	(2,214,077)

Page 30

LONGCLIFFE QUARRIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

23.

Reserves

Share premium account

The share premium account is used to record the aggregate amount or value of premiums paid when the Company's shares are issued at an amount in excess of nominal value.

Capital redemption reserve

This reserve records the nominal value of shares repurchased by the Company.

Profit and loss account

This reserve relates to the cumulative retained earnings less amounts distributed to shareholders.

24.	Capital commitments

At 31 March 2026, the Company had capital commitments contracted for but not provided in these financial statements of £4,036,527 (2025: £9,066,912).

At 31 March 2026, the Company had a commitment in place to purchase diesel at a fixed future price on a monthly basis for a total amount of £1,339,546 excluding VAT (2025: £1,865,376).

Page 31

LONGCLIFFE QUARRIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

25.	Pension commitments

The Company operates two contribution pension schemes.

The assets of the scheme are held separately from those of the Company in independently administered funds. The pension cost charge represents contributions payable by the Company to the fund and amounted to £723,789 (2025: £768,468). Contributions totalling £89,745 (2025: £85,641) were outstanding at the year end.

The Company operates a defined benefit pension scheme.

The defined benefit pension scheme is for all qualifying employees which is funded by the payment of contributions to separately administered funds. The scheme is closed both to new entrants and to future benefit accruals. The Company made contributions of £1,262,000 during the year (2025: £1,220,000).

The valuation is based on the most recent comprehensive triennial actuarial valuation dated 31 March 2025 which has been updated by Barnett Waddingham to assess the assets and liabilities of the scheme at 31 March 2026.

The valuation at 31 March 2026 indicated that the pension scheme assets exceeded its liabilities and accordingly the scheme was in a technical surplus position. As the assets of the scheme are held separately for the company, the actuary has confirmed that it is not appropriate for the company to recognise this surplus as an asset and accordingly an asset ceiling of £1,123,000 has been applied to leave the recognised net pension scheme liability at NIL (2025: Net Liability £183,000).

Reconciliation of present value of plan liabilities:
	2026	2025
	£	£

Reconciliation of present value of plan liabilities
At the beginning of the year	15,238,000	17,195,000
Interest cost	842,000	798,000
Actuarial gains	(278,000)	(1,857,000)
Benefits paid	(953,000)	(810,000)
Experience loss/(gain) on liabilities	633,000	(50,000)
Changes to demographic assumptions	36,000	(38,000)
At the end of the year	15,518,000	15,238,000

Page 32

LONGCLIFFE QUARRIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

25.Pension commitments (continued)

Reconciliation of present value of plan assets:
	2026	2025
	£	£

At the beginning of the year	15,055,000	15,426,000
Interest income	867,000	742,000
Return on assets	410,000	(1,523,000)
Contributions	1,262,000	1,220,000
Benefits paid	(953,000)	(810,000)
Impact of asset ceiling	(1,123,000)	-
At the end of the year	15,518,000	15,055,000

Composition of plan assets:
	2026	2025
	£	£

Equities (including properties)	12,426,000	12,690,000
Bonds	3,642,000	2,097,000
Insured pensions	491,000	81,000
Cash	82,000	187,000
Asset ceiling	(1,123,000)	-
Total plan assets	15,518,000	15,055,000

					2026	2025
					£	£

Fair value of plan assets	15,518,000	15,055,000
Present value of plan liabilities	(15,518,000)	(15,238,000)
Net pension scheme liability	-	(183,000)

The amounts recognised in profit or loss are as follows:
	2026	2025
	£	£

Interest on obligation	842,000	798,000
Interest income on plan assets	(867,000)	(742,000)
Total	(25,000)	56,000

Page 33

LONGCLIFFE QUARRIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

25.Pension commitments (continued)

Page 34

LONGCLIFFE QUARRIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

25.Pension commitments (continued)

	The cumulative amount of actuarial gains and losses recognised in the Statement of Comprehensive Income was £14,007,000 (2025 - £14,808,000).
	The Company expects to contribute £NIL to its defined benefit pension scheme in 2027.

Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):
	2026	2025
	%	%

Discount rate	6.00	5.75
Future salary increases	3.65	3.45
Inflation assumption	2.95	2.75
Mortality rates
- for a male aged 65 now	22.2 years	22.0 years
- at 65 for a male aged 45 now	20.9 years	20.7 years
- for a female aged 65 now	24.7 years	24.7 years
- at 65 for a female member aged 45 now	23.2 years	23.3 years

Amounts for the current and previous four periods are as follows:
	2026	2025	2024	2023	2022
	£	£	£	£	£

Defined benefit obligation	(15,518,000)	(15,238,000)	(17,195,000)	(17,532,000)	(25,235,000)
Asset ceiling	(1,123,000)	-	-	-	-
Scheme assets	16,641,000	15,055,000	15,426,000	14,496,000	20,469,000
Surplus	-	(183,000)	(1,769,000)	(3,036,000)	(4,766,000)

Page 35

LONGCLIFFE QUARRIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

Not later than 1 year	785,306	1,134,243
Later than 1 year and not later than 5 years	2,092,347	2,577,178
Later than 5 years	5,108,075	5,408,550
	7,985,728	9,119,971

Commitments under operating leases include a lease for land and buildings of £300,475 per annum (2025: £300,475 per annum) expiring in 2048.

27.

Related party transactions

The Company has taken advantage of the exemption in FRS 102 Section 33.1A to not disclose transactions with wholly owned group entities.

Costs of £341,622 (2025: £332,725) relating to the development of a quarry occupied by Longcliffe Quarries Limited along with other costs of £30,529 (2025: £74,929) have been incurred by RJG Shields (trading as Avochie Estate Sporting Limited) and recharged to the Company. Of this amount, £111,569 (2025: £114,958) is still outstanding at the year end.

The directors loan account at the year end is in a debtor position of £172,246 (2025: £330,504) as a result of costs incurred by the Company and owed back to Longcliffe Quarries Limited by RJG Shields of £172,246 (2025: £330,504).

A loan account relating to a close family member of a director is in a debtor position of £154,899 (2025: £NIL) as a result of costs incurred by the company and owed back to Longcliffe Quarries Limited.

Costs of £30,250 (2025: £30,250) were incurred during the year relating to office accommodation in Avochie Quarry leased from JFG Shields. Of this amount £NIL (2025: £NIL) is still outstanding at the year end.

Pension plan transactions

During the year, payments totalling £160K (2025: £230k) were made to The Longcliffe Quarries (Self-Administered) Pension Plan. This is a private pension plan, of which RJG Shields, JFG Shields (both directors), AML Shields (wife of RJG Shields), EEG Shields and EAG Shields (daughters of RJG Shields) are the beneficiaries.

Rental charges of £300K (2025: £300k) from Longcliffe Quarries Ltd were paid in the year to The Longcliffe Quarries (Self-Administered) Pension Plan in relation to the rental of land.

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LONGCLIFFE QUARRIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

28.	Controlling party

The immediate and ultimate parent undertaking is Longcliffe Group Limited, a company registered in England and Wales.

The largest and smallest group of undertakings for which group accounts for the year ended 31 March 2025 have been drawn up is that headed by Longcliffe Group Limited. Copies of the group accounts are available at Companies House.

The ultimate controlling party is RJG Shields and members of his immediate family, by virtue of their shareholding in the ultimate parent undertaking.

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