The directors present the Strategic Report for the year ended 31 March 2026.
Business Performance
The year ended 31 March 2026 was a transitional year for the business. The Group continued to develop its operating platform, management capability and organisational structure to support future growth.
Turnover increased year on year from £23.2m in 2025 to £25.1m in 2026, reflecting continued activity across the Group’s core markets and the benefit of longer term contract positions. Profitability reduced from an operating profit of £1.4m in 2025 to an operating loss of £0.1m in 2026 as a result of changes in business and contract mix, increased subcontractor involvement and continued investment in people, systems, plant and management capability.
The Directors consider the underlying position of the business to remain strong. The Group maintains a robust balance sheet and cash position, has banking facilities in place and remains well positioned to tender for and deliver future work. Investment in plant and equipment continued during the year and is expected to remain an important part of supporting the Group’s growth plans.
The business remains active in its core rail markets, working with Network Rail and Tier 1 contractors, while also developing opportunities in adjacent sectors. Notable developments include opportunities with BAE Systems and entry into the power sector through UK Power Networks. These opportunities support the Group’s strategy of maintaining its core rail position while selectively broadening its customer base and market exposure.
The Directors remain positive about the outlook for the business. Market conditions have been challenging, particularly in rail, but pipeline visibility has improved and the organisational changes made during the year provide a stronger platform for future growth.
Review of the Business
Rail Services Divisions
Overview
The rail market remained challenging during the year, with activity under the current control period continuing to develop more slowly than anticipated. This affected the timing of work coming through into delivery and impacted activity levels across a number of service areas.
Despite this, the Group continues to have a strong position in the rail sector. The business has maintained key customer relationships, continued to work with Network Rail and Tier 1 contractors, and remains well positioned to benefit from increasing activity as pipeline visibility improves.
The Directors remain optimistic about the outlook and have made changes to its structure, management and delivery model during the year, with these changes expected to support growth as opportunities convert into secured work and delivery
Arboriculture and Fencing
The Arboriculture and Fencing activities had a positive year in terms of activity. Growth was supported by work under the Network Rail framework, with year two of the contract providing greater volume and improved visibility.
The change in contract mix, including a greater level of longer-term and cost-reimbursable work, has impacted margin profile. This reflects a conscious move towards longer-term contract positions and a reduced risk profile. The business continues to learn and develop its approach as these contracts mature.
The outlook for Arboriculture and Fencing remains positive. The business continues to see strong demand in its core rail markets and is well placed to support Network Rail and Tier 1 contractors as future workbanks develop.
Civils
The Civils division experienced a challenging year, reflecting the timing of activity and the development of the pipeline. During the year the division was restructured, with the objective of strengthening delivery capability and improving the platform for future growth.
The pipeline for Civils is encouraging and the Directors believe there is significant growth potential within this area. The focus remains on building a sustainable and controlled civils business, aligned to the Group’s broader rail, infrastructure and specialist services capability.
On Track Plant
On Track Plant activity was impacted by demand levels across the wider business and market. The Group has continued to invest in plant and equipment, reflecting the Directors’ confidence in the medium-term outlook and the expectation that demand will increase as activity levels improve.
The division remains an important part of the Group’s integrated service offering, supporting both internal delivery and external customer requirements. The outlook is positive as rail activity and workbanks continue to develop.
Ecology
Ecology experienced a more subdued year, with lower internal demand and delays to workbanks affecting activity levels. The division continues to provide important support to the Group’s wider trading activities and remains a specialist capability within the business.
The Directors continue to see Ecology as an important part of the Group’s service offering. Demand for ecological support, biodiversity management and environmental compliance remains relevant across the markets in which the Group operates, and the division remains well positioned as activity levels improve.
Forestry Services Division
As a leader in its market, The Forestry division experienced a steady year in terms of activity, although performance was affected by macro economic drivers such as higher fuel, freight and transport costs.
The traditional timber harvesting and marketing activity programme remained an important part of the division’s work, alongside developing markets in non-traditional products, graded firewood and energy from wood biomass.
The division continues to maintain key customer relationships and remains focused on growing in areas such as tree safety, plant health and alternative products, while continuing to support both private and public sector clients.
The Group continues to invest in people, plant and processes to ensure the division can meet the operational, compliance and delivery requirements of an evolving forestry market.
Business Outlook
The Directors remain positive about the outlook for the business. The market has been challenging, particularly in rail, but pipeline visibility is improving and there are increasing opportunities for growth.
The business is well positioned as a result of the investment and organisational changes made during the year. The Group has strengthened its management capability, continued to invest in plant and equipment, and maintained a strong balance sheet and banking facilities.
The Group continues to tender actively and has seen encouraging opportunities across rail, infrastructure and adjacent sectors. In particular, the business has secured and is pursuing opportunities that support diversification beyond its traditional core, including work in powerline tree cutting and vegetation clearance.
A win with UK Power Networks provides entry into the power sector through an eight-year framework for powerline tree cutting and vegetation clearance across Southern and Eastern regions. The Group has also developed opportunities with BAE Systems, including specialist boundary security fencing, associated civils design elements, tree clearance and fencing works across multiple sites.
The Directors believe these opportunities, together with the Group’s established rail position, provide a strong platform for future growth. The business remains strategically aware of customer concentration and continues to develop opportunities in adjacent markets while maintaining its core relationships.
Health and Safety
Coombes continues to prioritise health and safety across all areas of the business. This applies not only to employees, but also to subcontractors, suppliers, customers and the public.
The Group has an experienced internal health and safety function and continues to track a variety of indicators to monitor and assess performance. Health and safety performance is reviewed regularly by the Directors.
As the business continues to grow and operate across increasingly complex environments, the importance of health and safety, compliance and operational discipline remains central to the Group’s approach.
Environment
Coombes is committed to minimising the impact its operations have on the environment. The Group focuses on reducing emissions, increasing biodiversity and reducing landfill waste, supported by its in-house ecology expertise.
Environmental management remains an important part of the Group’s service offering and operating model, particularly given the nature of the sectors in which the business operates.
Social Value
Coombes remains committed to tackling economic inequality by creating rewarding and engaging employment opportunities and by providing staff with opportunities for training, upskilling and career development.
The Group continues to support the principles of the 5% Club Charter, having pledged to work towards having a minimum of 5% of employees in “Earn and Learn” positions by 2028.
The business will continue to identify opportunities for apprenticeships, skills development and training that address youth unemployment and skills shortages within the sectors in which it operates.
Economic and political conditions
Changing economic and political conditions can affect the business in different ways and may be difficult to predict.
A significant proportion of the Group’s activities are influenced by public sector infrastructure spending, particularly in the rail sector. The timing of funding and work release under rail control periods can therefore have a material impact on activity levels and short-term performance.
The Directors also remain aware of broader changes in government policy and spending priorities. Recent political focus on regional investment and the reallocation of funding towards other areas may affect the wider infrastructure market. However, the Group has a presence across multiple regions and does not currently have direct exposure to specific schemes that have been cancelled or delayed as a result of such announcements.
A worsening economic environment could negatively impact public sector funding, private sector demand and supply chain costs. Spikes in labour, fuel, freight, transport and energy costs could also reduce profitability, particularly where cost recovery mechanisms are limited.
The Group mitigates these risks through appropriate pricing, suitable contractual mechanisms, operational flexibility, ongoing tendering activity, and the maintenance of strong customer and supplier relationships.
Contract business and customer concentration
A significant proportion of the Group’s business remains concentrated in the rail sector and with a limited number of key customers and framework contracts.
The Group is dependent on its ability to retain, renew and secure new contracts as existing arrangements mature or expire. Failure to secure new work could result in reduced turnover and profitability.
The Group mitigates this risk through strong customer relationships, high standards of delivery, robust compliance functions, tendering expertise and a focus on maintaining an appropriate balance of contractual risk.
The Directors are also strategically aware of customer concentration and continue to develop opportunities in adjacent markets. Recent opportunities in the power sector and with new customers provide further diversification and support the Group’s long-term growth strategy.
Labour, subcontractor and supply chain risk
The Group operates in sectors where skilled labour, specialist subcontractors and plant availability are important to successful delivery.
Increased subcontractor involvement, labour availability constraints or cost inflation may affect profitability and delivery performance. The Group manages this risk through active supply chain management, investment in internal capability, careful contract review, and continued investment in people, plant and operational management.
Compliance and health and safety
The Group’s activities are subject to substantial regulation and legislation. Failure to comply with these requirements could lead to direct financial loss, reputational damage, loss of current or future work, penalties or litigation.
The Group mitigates these risks by operating robust quality, environmental and health and safety management systems, supported by experienced internal teams and regular Director oversight.
The Group continues to maintain accredited management systems, including ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018. These accreditations demonstrate the Group’s commitment to continuous improvement, sustainability and safe working practices.
There have been no significant events since the balance sheet date requiring disclosure in these financial statements.
Going Concern
The Directors have reviewed the Group’s pipeline, cash position, banking facilities and expected trading performance. The Directors consider that the Group has adequate resources to continue in operational existence for the foreseeable future.
Accordingly, the Directors continue to adopt the going concern basis in preparing the financial statements.
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. The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
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 Coombes Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2026 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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).
Basis for 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 group's and parent 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
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.
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.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £0 (2025 - £0 profit).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
Coombes Group Limited (“the company”) is a private company limited by shares and is incorporated in England and Wales. The registered office is Unit 6 New Buildings Farm, Winchester Road, Hampshire, United Kingdom, GU32 2PB.
The group consists of Coombes Group Limited and all of its subsidiaries.
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 under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
The consolidated group financial statements consist of the financial statements of the parent company Coombes Group Limited together with its subsidiaries.
All financial statements are made up to 31 March 2026. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Where a subsidiary is acquired by a share for share exchange, the consolidation is accounted for under the merger method.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.
Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.
When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
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 recognised in the profit and loss account.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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 classified as receivable within one year are not amortised.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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 assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares 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. 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.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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 leased asset are consumed.
In the application of the group’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 as follows.
The directors use their experience to review and estimate useful economic lives and residual values of all assets, taking into account both standards of maintenance and technical obsolescence. Depreciation policies as noted within the accounting policies are based upon these estimates. Accumulated depreciation carried forward at 31 March 2026 is £8.38m.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
The capitalised development costs relate to the creation of an application that measures and controls "safety critical site access data and subsequent fatigue management". The directors have determined that the costs fulfill the criteria of FRS102 section 18 and have therefore capitalised costs incurred in this development phase.
The project is expected to be completed by the end of the financial year ending 31 March 2027.The directors have determined that the estimated useful life is 3 years once the asset is brought into use, which reflects the expected period of economic benefit.
No impairment indicators were identified during the year.
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
The valuation of the property at the year end was completed by the directors.
The property has an original cost of £1,777,510 (2025: £1,777,510).
All the company's subsidiaries are included in the group accounts.
Details of the company's subsidiaries at 31 March 2026 are as follows:
The registered office address for all subsidiary companies is:-
The company has guaranteed all outstanding liabilities at the balance sheet date in accordance with section 479C of the Companies Act for the subsidiaries listed below. They are therefore exempt from audit by virtue of s479A of the Act.
Coombes Track Limited
Coomes Frimstone Limited
Coombes Holdings Limited
All obligations under hire purchase or finance lease arrangements are secured against the assets to which they relate.
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 2 years 5 months. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
The deferred tax liability set out above relating to accelerated capital allowances is expected to reverse within 6 to 7 years.
The deferred tax liability in respect of expense timing differences and retirement pension obligations is expected to reverse within 1 year
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
The company has a single class of ordinary shares. There are no restrictions on the distribution of dividends and repayment of capital.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows: