Registered number: SC401848
FOR THE YEAR ENDED 30 JUNE 2025
RD NAIRN LIMITED
COMPANY INFORMATION
RD NAIRN LIMITED
CONTENTS
RD NAIRN LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2025
The company recorded record turnover levels rising to £18.8m up from £11.7m in 2024. The company also recorded a solid gross profit margin of 7.8% (£1,466,438) up from 9.8% (£1,150,649) in 2024.
The company has been successful in diversifying into constructing houses for resale along with maintaining a healthy portfolio of contract work for other house builders. This diversification has contributed to the significant increase in turnover.
The overall results for the year are extremely positive with a significant increase in profitability for the year compared to 2024.
The company has been successful in diversifying into constructing houses for resale along with maintaining a healthy portfolio of contract work for other house builders. This diversification has contributed to the significant increase in turnover.
The overall results for the year are extremely positive with a significant increase in profitability for the year compared to 2024.
The company continues to operate in a sector with traditionally tight margins. The company continues to buck the trend in the sector, increasing turnover levels whilst maintaining a steady gross margin.
Contracts are being managed and reviewed in detail meaning fixed contracts are now making steady profits with only a few minor loss making contracts in existence.
The demand in housebuilding continues to increase in the area with planning application processes going through much quicker than in previous years. This, in turn, is contributing to the growth of the company.
Contracts are being managed and reviewed in detail meaning fixed contracts are now making steady profits with only a few minor loss making contracts in existence.
The demand in housebuilding continues to increase in the area with planning application processes going through much quicker than in previous years. This, in turn, is contributing to the growth of the company.
The director uses a range of KPI's, alongside historical trend data, to monitor business performance throughout
the year. These are set out in the table below:
the year. These are set out in the table below:
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This report was approved by the board and signed on its behalf.
Page 1
RD NAIRN LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 JUNE 2025
The director presents his report and the financial statements for the year ended 30 June 2025.
The director is responsible for preparing the Strategic report, the Director's report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the director is 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;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.
The profit for the year, after taxation, amounted to £200,446 (2024 - £412,344).
The total distribution of dividends for the year ended 30 June 2025 will be £42,200 (2024 - £Nil).
The director who served during the year was:
The auditors, Armstrong Watson Audit Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
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RD NAIRN LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
This report was approved by the board and signed on its behalf.
Page 3
RD NAIRN LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RD NAIRN LIMITED
We have audited the financial statements of RD Nairn Limited (the 'Company') for the year ended 30 June 2025, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of cash flows, 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).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. Except for the limitations above we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.
In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.
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RD NAIRN LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RD NAIRN LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The director is 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.
As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the opening inventory quantities of £575,949 held at 1 July 2024. We have concluded that where the other information refers to the inventory balances, it may be materially misstated for the same reason.
Except for the possible effects of the matters described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Director's report have been prepared in accordance with applicable legal requirements.
Except for the matters described in the basis for qualified opinion section of our report, 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 Director's report.
Arising solely from the limitation of the scope of our audit work on inventory as referred to
above:
∙we have not obtained all the information and explanations that we considered necessary for the purpose of
our audit; and
∙we were unable to determine whether adequate accounting records have been kept.
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RD NAIRN LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RD NAIRN LIMITED (CONTINUED)
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 Auditors' 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:
•We obtained an understanding of laws and regulations that affect the Company, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. Key laws and regulations that we identified included the UK Companies Act, tax legislation, ISO 9001, ISO 14001 and the Health and Safety act.
• We enquired of the Director, reviewed correspondence with HMRC and reviewed Director's meeting minutes for evidence of non-compliance with relevant laws and regulations. We also reviewed controls the Director has in place to ensure compliance.
• We gained an understanding of the controls that the Director has in place to prevent and detect fraud. We enquired of the Director about any incidences of fraud that had taken place during the accounting period.
• The risk of fraud and non-compliance with laws and regulations was discussed within the audit team and tests were planned and performed to address these risks.
• We reviewed financial statements disclosures and tested to supporting documentation to assess compliance with relevant laws and regulations discussed above.
• We enquired of the Director about actual and potential litigation and claims.
• We performed analytical procedures to identify any unusual or unexpected relationships that might indicate risks of material misstatement due to fraud.
• In addressing the risk of fraud due to management override of internal controls we tested the appropriateness of journal entries and assessed whether the judgements made in making accounting estimates were indicative of a potential bias.
• We enquired of the Director, reviewed correspondence with HMRC and reviewed Director's meeting minutes for evidence of non-compliance with relevant laws and regulations. We also reviewed controls the Director has in place to ensure compliance.
• We gained an understanding of the controls that the Director has in place to prevent and detect fraud. We enquired of the Director about any incidences of fraud that had taken place during the accounting period.
• The risk of fraud and non-compliance with laws and regulations was discussed within the audit team and tests were planned and performed to address these risks.
• We reviewed financial statements disclosures and tested to supporting documentation to assess compliance with relevant laws and regulations discussed above.
• We enquired of the Director about actual and potential litigation and claims.
• We performed analytical procedures to identify any unusual or unexpected relationships that might indicate risks of material misstatement due to fraud.
• In addressing the risk of fraud due to management override of internal controls we tested the appropriateness of journal entries and assessed whether the judgements made in making accounting estimates were indicative of a potential bias.
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RD NAIRN LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RD NAIRN LIMITED (CONTINUED)
Due 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, as with any audit, there remains a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 Auditors' 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.
Chartered Accountants & Statutory Auditors
Carlisle
Date: 08 September 2026
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RD NAIRN LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2025
Page 8
RD NAIRN LIMITED
REGISTERED NUMBER: SC401848
BALANCE SHEET
AS AT 30 JUNE 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 13 to 27 form part of these financial statements.
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RD NAIRN LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2025
Page 10
RD NAIRN LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2025
Page 11
RD NAIRN LIMITED
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 JUNE 2025
Page 12
RD NAIRN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
RD Nairn Limited is a private company, limited by shares, registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.
The principal activities of the Company in the period under review were groundworks, civil engineering services and house building.
These financial statements have been prepared in pounds sterling, rounded to the nearest pound, as this is the currency of the primary economic environment in which the Company operates.
The principal activities of the Company in the period under review were groundworks, civil engineering services and house building.
These financial statements have been prepared in pounds sterling, rounded to the nearest pound, as this is the currency of the primary economic environment in which the Company operates.
2.Accounting policies
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 the Republic of Ireland 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:
The financial statements have been prepared on a going concern basis, which assumes that the company will continue in operational existence for the foreseeable future. The directors have considered the company’s financial position, its cash flows, liquidity, and forecasted trading performance, alongside potential risks and mitigating factors.
In making this assessment, the directors have reviewed detailed budgets and forecasts covering a period of at least 12 months from the date of signing the financial statements. They have taken into account current and anticipated economic conditions and the company’s ability to meet its obligations as they fall due.
Based on this review, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and thus consider it appropriate to prepare the financial statements on a going concern basis.
In making this assessment, the directors have reviewed detailed budgets and forecasts covering a period of at least 12 months from the date of signing the financial statements. They have taken into account current and anticipated economic conditions and the company’s ability to meet its obligations as they fall due.
Based on this review, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and thus consider it appropriate to prepare the financial statements on a going concern basis.
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RD NAIRN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
2.Accounting policies (continued)
Where contract revenue recognised exceeds the amount invoiced, the balance is included within debtors as amounts recoverable on contracts. Where amounts invoiced exceeded revenue recognised, the excess is included within creditors as deferred income.
Contract costs are recognised as incurred. Where it is probable that total contract costs will exceed contract revenue, the expected loss is recognised in the profit and loss account in cost of sales.
Revenue from the sale of completed houses is recognised on legal completion, when significamt risks and rewards of ownership have transferred to the purchaser.
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.
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RD NAIRN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
2.Accounting policies (continued)
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RD NAIRN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.
Depreciation is provided on the following basis:
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.
Housing stock held for sale is recognised as inventory and initially measured at cost, which includes direct construction expenses, site acquisition costs, and directly attributable development overheads. Inventory is subsequently carried at the lower of cost and net realisable value, with NRV reflecting the expected selling price less completion and disposal costs.
Amounts recoverable on contracts represent revenue recognised in respect of work performed on construction or service contracts, which has not yet been invoiced to the customer. These are recognised as assets within a separate line in debtors when the outcome of a contract can be reliably estimated and it is probable that the economic benefits will flow to the company.
The revenue is measured at the fair value of the consideration received or receivable, based on the stage of completion of the contract activity at the reporting date. The stage of completion is determined using a method that reliably measures work performed.
Any foreseeable losses on contracts are recognised as soon as they become apparent.
The revenue is measured at the fair value of the consideration received or receivable, based on the stage of completion of the contract activity at the reporting date. The stage of completion is determined using a method that reliably measures work performed.
Any foreseeable losses on contracts are recognised as soon as they become apparent.
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RD NAIRN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
2.Accounting policies (continued)
Expenditure incurred through levies or access fees is recognised as an expense in the profit or loss account when incurred. These costs represent operating charges and are not capitalised.
A provision is recognised for the legal or constructive obligation to undertake site restoration or remediation activities once extraction operations have ceased.
The provision is measured at the best estimate of the expenditure required to settle the obligation, discounted to present value if material. This estimate is reviewed annually and adjusted for changes in assumptions, timing or scope of the restoration.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
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RD NAIRN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
2.Accounting policies (continued)
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Judgements and estimates are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:
(a) Revenue recognition & Amounts Recoverable on Long Term Contracts
The company recognises income on a stage of completion basis. Amounts Recoverable on Long Term Contracts is calculated on an output basis where the margins are consistent throughout the project, with revenue being recognised in line with the work performed at a certain point in time. Judgement is used when calculating Amounts Recoverable on Long Term Contracts and estimating the stage of completion of each project.
(b) Quarry restoration provision
The restoration provision represents management’s best estimate of the cost required to restore quarry sites to meet environmental and legal obligations upon cessation of operations. This estimate involves significant judgement and is based on current legal requirements, anticipated restoration methods, site-specific conditions, and third-party cost estimates where available. The provision is reviewed regularly and adjusted for changes in scope, regulations, or expected timing. The costs are discounted to present value using a rate reflecting the time value of money. Due to the inherent uncertainty in forecasting long-term environmental costs, actual outcomes may differ significantly from these estimates.
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RD NAIRN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
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RD NAIRN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
Page 20
RD NAIRN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
There were no factors that may affect future tax charges.
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RD NAIRN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
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RD NAIRN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
Page 23
RD NAIRN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
The bank loan is secured by a floating charge over all assets and undertakings of the business and was created on 22 March 2016.
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RD NAIRN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
Loans are secured by a floating charge over all assets and undertakings.
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RD NAIRN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
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Page 26
RD NAIRN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
The pension cost charge represents contributions payable by the company to the fund and amounted to £75,918 (2024 - £63,755). Contributions totalling £3,278 (2024 - £nil) were payable to the fund at the reporting date.
The ultimate controlling party is R D Nairn by virtue of his shareholding.
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