The directors present their strategic report on the company for the 12 month year ended 31 March 2026.

Principal activities and review of the business

The company continues to provide heating, ventilation, and electrical services to a broad client base. Alongside our traditional construction engineering operations, we are strategically accelerating our delivery of decarbonisation works as well as undertaking electrification infrastructure works.

Our regional office network continues to flourish with our expanded geographic coverage, providing opportunities to our staff to develop and grow. Our client network across our regional network continues to flourish with repeat business recognising the service delivery provided. Our Business Direction Plan continues to steer the long-term direction of the business and has resulted in an increase of working directly with end users on decarbonisation projects. This has enabled our forward order book to remain above 100m for the second consecutive year at 104m (104m 2025).

Employee retention remains strong, driven by targeted growth and development initiatives that provide clear career pathways and continuous training. Our staff & operative apprenticeship scheme remains a cornerstone of our talent strategy and continues to yield excellent results. This high rate of staff retention is further supported by strategic investments in IT infrastructure and process automation, freeing our workforce from routine tasks to focus on high-value, strategic assignments. This includes investment in tooling and fleet (the latter resulting in increased operating lease commitments).

Summary of results

The financial year to March 2026 performance is as a direct result of the efforts and professionalism of our staff. Turnover levels increased to £70.4m (£52.8m 2025) in line with our business direction plan many of these projects are long term project that continue into 2026 and beyond. Gross margin has returned to expected levels resulting in a record high NPBT £3.1m (£-2.1m 2025). Cash at the year-end remained strong at £3.1m (£2.5m 2025).

Principal risks and uncertainties

The principal risks and uncertainties of the business are examined below:

Market Failures & Global Supply Chain fragility

The construction sector has faced prolonged economic headwinds, culminating in notable national and regional insolvencies. To mitigate these systemic risks, the company remains committed to maintaining a highly diversified client portfolio, supported by comprehensive credit insurance and rigorous payment controls. While these fiscal policies are conservative, they provide the robust resilience necessary to safeguard our financial position against industry failures. Global issues like trade conflicts and geopolitical tensions severely disrupt UK supply chains. These disruptions cause rising shipping costs, material shortages, and delivery delay resulting in increased operational expenses and inflation.

Government Legislation and Compliance Red Tape

Post-Grenfell building safety regulations have introduced necessary accountability, but they have also created a culture of risk aversion and decision paralysis across the construction industry. As companies adjust to the stringent requirements of the Building Safety Regulator (BSR), planning and pre-construction phases are experiencing significant delays and budget inflation. Ultimately, this cautious environment is stalling or completely halting projects before they even break ground. To overcome these friction points, our integrated pre-construction team combines design and operational expertise. By embedding specialists at critical stages, we navigate regulatory frameworks efficiently, manage project costs, and protect the project budget. This collaborative approach allows our site teams to focus entirely on maintaining project schedules and delivering superior build quality.

Cyber Security

Cyber security remains a key focus of the company, with the support of a third-party advisor we have implemented rigorous protocols to ensure our data and systems remain protected, backed up and operational. A move towards cloud-based storage and third-party operating platforms has resulted in a greater diversity of information storage. We deploy RO1 resiliency for our Internet provider, ensuring a 99.9999% uptime across the year. We also have quarterly automated email phishing test to keep our staff trained on the most up-to-date attack vectors. The company maintains its Cyber Essentials certification.

Staff Training and Development

Our engineering excellence is entirely driven by our people. By prioritizing continuous learning, safety, and community, we create an environment where everyone can thrive and deliver their best work. Our structured growth programs empower our team at every stage of their career. Leadership Pathways, we intentionally cultivate our future leaders, resulting in a proven track record of internal promotion into senior roles. Technical Advancement, we provide specialized, cutting-edge training to keep our engineering minds ahead of industry innovations. Holistic Wellbeing, we actively invest in physical and mental health initiatives, ensuring our people feel supported both inside and outside the workplace. Early Careers & Apprenticeships, our comprehensive apprenticeship scheme equips both field and office teams with a powerful mix of technical qualifications, hands-on project experience, and the vital interpersonal skills needed for long-term career success, at our forthcoming graduation event we have over 40 delegates who have undertaken structured, fully funded training level 2 or above.

Corporate Social Responsibilities

This year, we proudly strengthened our community ties through our corporate social responsibility program. We dedicated significant volunteer hours and fiscal support to local football and rugby clubs, helping local sports thrive. Additionally, we partnered with various charities, providing vital financial resources and wider exposure through our social media posting. These initiatives reflect our core values and deep commitment to local growth. We will continue investing in our community, fostering teamwork, and supporting meaningful causes that create a lasting, positive impact.

Liquidity and Financing

Maintaining a strong liquidity position remains a priority. The company’s cash at year end was £3.1m up from £2.5m in 2025. The importance of liquidity remains paramount to the continuing success of the company, therefore the ongoing agreement of an asset-based lending facility remains in place supporting the company’s working capital and development plans.

Key Performance Indicators

The Directors review a range of key performance indicators (KPIs), both financial and non-financial, to evaluate the performance and position of the Company and to support the successful delivery of its strategy. The principal financial KPIs for the year were revenue, gross margin, operating profit, liquidity and order book value. During the year, the Company achieved revenue of £70.4 million (2025: £52.8 million) and a Gross margin of 12.8% (2025: 5.9%), with a NPBT of £3.1m, a testament to the staff’s drive, resilience and determination. Working Capital increased to £4.2m (2025: 1.8m) due to greatly improved financial health. The order book at year end stood at £104 million (2025: £104 million), providing a solid platform for future trading.

Non-financial KPIs include health and safety performance and staff retention. The Company recorded a reportable accident frequency rate (RAFR) of 0.182 (2025: 0.00) with an industry average being 2.5, we consider that our people are set to work with high safety standards, methods and expectations. This is further endorsed by our accreditation of Construction Line Platinum status. Employee retention for the period increased once more to 85% (80% 2025), reflecting ongoing investment in training and staff wellbeing.

The Directors consider that these KPIs provide a balanced assessment of the Company’s financial performance, operational effectiveness, and commitment to quality and safety, and will continue to guide decision-making to support sustainable growth.

On behalf of the board

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

The results for the year are set out on page 11.

No ordinary dividends were paid.

On 26th October 2021 there was a transfer of ownership of the company to The J & B Hopkins Employee Trustee Company Limited as trustee of The J & B Hopkins Limited Employee Share Trust. During the period, contributions were paid of £nil (2025 - £nil) to The J & B Hopkins Employee Trustee Company Limited as trustee of The J & B Hopkins Limited Employee Share Trust

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

The auditor, TC Group, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

The directors are responsible for preparing the annual 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 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.

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

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

We have audited the financial statements of J & B Hopkins 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, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• 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 UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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.

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

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

Our approach was as follows:

• We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as required by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations;

• We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK;

• We considered the nature of the industry, the control environment and business performance, including the key drivers for management’s remuneration;

• We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit;

• We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities .This description forms part of our auditor’s report.

Use of our report

This report is made solely to the 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.

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

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

J & B Hopkins Limited is a private company limited by shares incorporated in England and Wales. The registered office is Concorde House, Concorde Way, Segensworth North, Fareham, Hampshire, United Kingdom, PO15 5RL.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.

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

As set out in the Directors’ Responsibilities Statement on page 6, the directors are required to prepare the financial statements on a going concern basis unless it is inappropriate to presume that the company will continue in business.

In assessing whether the going concern basis is appropriate, the directors have reviewed in detail the company’s cash flow forecasts and its ability to meet liabilities as they fall due for a period of at least twelve months from the date of approval of these financial statements. These forecasts are based on agreed work orders and forward load projections, with certain assumptions about additional expected sales, supported by historical trading patterns. The projections indicate that the company will be able to meet its liabilities as they fall due over the forecast period and that it will operate with sufficient headroom.

In July 2025, the company entered into an asset-based lending facility to support its working capital requirements. The facility has a minimum term of 36 months and remains available to the company.

The directors are satisfied that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the financial statements have been prepared on a going concern basis.

At the time of approving the financial statements, the directors remain confident that the company will have sufficient resources to meet its ongoing obligations and to enable it to continue to operate for the foreseeable future.

The turnover shown in the profit and loss account represents amounts receivable for services provided during the year, exclusive of VAT.

In the case of contracts treated as long term, turnover reflects the contract activity during the period and the proportion of total contract value which costs incurred to date bear to total expected costs. The attributable profit on contracts is recognised once their outcome can be assessed with reasonable certainty. The profit recognised reflects the proportion of work completed to date on the project. Full provision is made for losses on all contracts in the year in which the loss is first foreseen. This is applicable to both major projects and technical services.

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

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

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

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

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 their nature, and provided it is probable they will be recovered.

Amounts recoverable on long term contracts, which are included in trade debtors, are stated at the net sales value of the work done less amounts received as progress payments on account. Excess progress payments are included in creditors as payments on account. Cumulative costs incurred net of amounts transferred to cost of sales, less provision for contingencies and anticipated future losses on contracts, are included as long-term contract balances in stock.

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers and payments received from customers on contracts where payments received exceed the assessed percentage of costs completed of the contract. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments and contributions payable to The J & B Hopkins Employee Trustee Company Limited in its capacity as trustee of The J & B Hopkins Limited Employee Share Trust are recognised as liabilities once they are no longer at the discretion of the company.

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax.

Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

The company operates a defined contribution scheme for employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the profit and loss account.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Calculation of performance on long term contracts:

The company operates a number of long-term construction contracts. Profit is recognised by reference to management's assessment of each contract, including estimated final revenues, costs to complete and the recoverability of amounts due.

During the year, significant judgement and estimation uncertainty arose on contracts subject to customer delays and commercial disputes. Amounts recognised include loss and expense claims and uncertified variations totalling £6,021,178. In determining the amounts recognised, the directors have considered contractual entitlement, the status of negotiations, site records and correspondence, certification progress, professional advice where appropriate and previous experience. These amounts are recognised only where the directors consider there to be an enforceable right to payment and that recovery is probable. The ultimate amounts recovered may differ from those recognised and any differences will be reflected when the relevant matters are resolved.

Customers have also raised disputed contra charges totalling £4,453,540 relating principally to alleged defects and delays. The directors consider these claims to be invalid and, accordingly, no provision has been recognised. The amounts are treated as contingent liabilities, however an adverse resolution could result in amounts becoming payable.

At the balance sheet date, the relevant contracts had aggregate net carrying values of £5,182,735 within trade debtors, which the directors consider to be fully recoverable.

Turnover represents contract revenue receivable in respect of mechanical and electrical contracting services provided in the United Kingdom.

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 7 (2025 - 8).

The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

At the balance sheet date, other borrowings comprised £1,435,370 drawn under the company’s receivables finance facility (2025: £nil). Amounts drawn bear discount at 2.65% above base rate.

The facility is secured by an all assets debenture incorporating fixed and floating charges over the whole of the company’s undertaking and assets.

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

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

The directors are considered to be the company’s key management personnel. Details of aggregate directors’ remuneration, including pension contributions, are disclosed in note 6.

Mrs B. L. Hopkins maintains a loan account with the company. At the year-end, the company owed Mrs B. L Hopkins £756,430 (2025 - £756,430). There is no formal loan agreement governing this balance and no fixed repayment date has been agreed. The balance is unsecured and no interest was charged or paid during the year (2025: £nil). The amount has been classified as repayable within one year.

During the period, the company made rental payments for properties, in which Mrs B. L. Hopkins, Mr R.J. Hopkins and Mr P. H. Hopkins have an interest, these rental payments totalled £225,000 (2025 - £225,000). The rental arrangements were entered into on the terms set out in the relevant lease agreements.

All the company's shares are held by The J&B Hopkins Employee Trustee Company Limited as trustee on behalf of The J&B Hopkins Limited Employee Share Trust. During the period, contributions were paid of £nil (2025 - £nil) to The J & B Hopkins Limited Employee Share Trust.

Cost of sales

The comparative figures have been restated to correct the classification of certain adjustments arising from customer contract settlement agreements. In the prior year, adjustments totalling £890,723 were reclassified from cost of sales to bad debt expense within administrative expenses for internal reporting purposes, so that the impact of the settlements was not reflected in the gross profit of the individual departments.

This internal reclassification is not appropriate for the statutory financial statements and has therefore been reversed. The comparative figures have been restated to reclassify £890,723 from administrative expenses to cost of sales.

The restatement has no impact on turnover, gross profit, profit before tax, profit after tax, net assets or reserves.

Operating lease commitments

The comparative operating lease commitments have been restated to include commitments in respect of the company’s premises which were omitted from the prior-year financial statements.

Commitments falling due within one year were previously reported as £301,396 and have been increased by £254,001 to £555,397. Commitments falling due between two and five years were previously reported as £169,921 and have been increased by £340,820 to £510,741.

Accordingly total comparative operating lease commitments have been increased by £594,821, from £471,317 to £1,066,138.

The restatement relates solely to the operating lease commitments disclosure and has no impact on the comparative profit, net assets or reserves.