REGISTERED NUMBER: 01079105 (England and Wales)

BAXALL CONSTRUCTION LTD

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

16

DIRECTORS:

M T Clarke

C P Tompsett

C A Stuart

S I Hardie

A B Huggins

SECRETARY:

K N Hardy

REGISTERED OFFICE:

2A Maidstone Road

Paddock Wood

Kent

TN12 6BU

REGISTERED NUMBER:

01079105 (England and Wales)

AUDITORS:

Lakeview Southern Audit Limited

Chartered Accountants and

Statutory Auditors

2 Lakeview Stables

Lower St. Clere

Kemsing

Sevenoaks

Kent

TN15 6NL

Strategic Report 25/26

The directors present their strategic report for the 12 Month period ended 31st March 2026. Overall, the business has delivered a strong year of growth, remained profitable, maintained cash discipline and continues to progress confidently towards its Vision 2030 objectives.

REVIEW OF BUSINESS

Baxall Construction Ltd, now with more than 60 years of trading history, continues to strengthen its position as a sustainable, high-performing construction business despite ongoing sector challenges.

Our Financial KPI's for this year are as follows:

- Turnover: £50.5M

- Net profit: £1.7M

- Balance sheet: £2M

- Secured and probable turnover 2026/27: £55M

- Secured and probable turnover 2027/28: £25M

- Supply chain payment terms: under 30 days

- Contractual disputes: none

The business achieved turnover growth of 30% in the year, resulting in net profit before interest and profit share exceeding the 4% target and balance sheet improvement, returning performance to the trajectory set out in Vision 2030. The business is expected to exceed its £56M turnover target for 2026/27 and remain on track towards a 5% net profit target. The longer-term Vision 2030 remains to achieve turnover in the region of £80M and 8% net profit through efficiency improvements, increased direct works, facilities management, whole-life support services and in-house design.

The pipeline remains strong at circa £380M, reflecting sustained focus on early engagement with both public and private sector clients and providing confidence in forward workload over the next two to three years. The continued implementation of the marketing plan has strengthened strategic positioning and supported progress towards a more sustainable business model for the benefit of the company, its supply chain and its customers.

The company continues to secure work through early engagement, open-book procurement and established client relationships, including framework appointments. It has also continued to win single-stage competitive tenders, while average contract values have increased in line with the strategic business plan.

Baxall continues to strengthen its framework capability across national and regional public sector bodies, including the DfE, MPS, NHS, Pagabo, LHC and Kent County Council, supporting capital programmes across Kent, Sussex, Surrey and London.

The business continues to build capability across Education, Infrastructure, Housing, Health, Community, Retrofit, Carbon Reduction and Heritage, maintaining a balanced portfolio across both public and private sector clients.

The development of the leadership of the business has included several director appointments and the internal appointment of a new Managing Director with the previous MD becoming Chairman to support the next chapter in the company's development.

The company has continued to recruit high-calibre talent, including graduates and apprentices, while increasing investment in training and development across employees, the wider workforce and the supply chain to support planned growth.

Continued investment in IT capability including the use of AI is both supporting and strengthening project delivery and supporting compliance with the Building Safety Act. This progress has been recognised through industry awards and is increasing the value offered to clients, with the roadmap to broader business integration expected to be substantially complete by the end of next year.

The climate response continues to advance, including the target of net zero carbon by 2030 and the practical application of learning from the completed University of Kent Knowledge Transfer Partnership. Further Innovate UK funding has been secured for a new KTP focused on AI in site management, reinforcing the drive for greater efficiency and cost reduction.

Development of the Whole Life Solution Provider model, expressed through the Baxall Playbook and aligned to Construction Leadership Council guidance, remains central to building a sustainable business model that delivers wider customer value beyond tender price alone.

Baxall completed its Employee Ownership Trust transaction in December 2020 and has now made all buyout payments without incurring debt. The EOT model continues to align strongly with the business culture, and the Baxall 2030 Vision provides a clear framework for future development and long-term sustainability.

We would like to refer users to the Company website www.baxallconstruction.co.uk and LinkedIn for further information on the current activities of the business.

PRINCIPAL RISKS AND UNCERTAINTIES

Financial Risk Management

The principal financial risk arises from estimating future profitability on contracts that span more than one accounting period; this is mitigated through disciplined tender-to-completion controls, review by professionally qualified Quantity Surveyors, and oversight from Contracts Managers and Directors.

Liquidity risk is mitigated through continuous cash flow monitoring, strict credit control and a commitment to maintaining prompt supplier payments, supporting both financial resilience and supply chain stability.

Financial performance is monitored through monthly reporting at both contract and company level, with the Board reviewing key financial indicators each month to maintain close control over margin, cash and overall profitability.

Other Risks

Cyber security remains a material operational risk; mitigation includes strengthened IT controls, enhanced monitoring processes, supply chain vigilance and the achievement of Cyber Essentials Plus accreditation.

Supplier insolvency and subcontractor concentration risk are being managed through enhanced credit checking, regular monitoring of subcontractor exposure and broader review of dependencies that could affect delivery or margin.

Economic and Workload Uncertainties

The principal uncertainties affecting forward workload and profit margin remain the wider economic environment, public sector spending constraints, geopolitical instability, exchange rate movements, inflationary pressure, skills availability and competitor insolvency.

Additional checks, controls and governance measures are in place to monitor these risks as they evolve and to protect the business from adverse impacts on workload, delivery and profitability.

The Board continues to rebuild balance sheet strength following completion of the EOT buyout and supported by a strong cash position, believes the business is well placed to manage current trading conditions while maintaining payment terms to the supply chain within 30 days.

The continued focus on efficiency in design and delivery, supported by collaborative BIM working, modern methods of construction, alternative build solutions and carbon reduction initiatives, is helping reduce overall cost without compromising profitability and is strengthening the long-term sustainability of the business.

The Board remains confident that Baxall is well positioned to deliver sustainable organic growth while continuing to provide excellent service to its customers.

ON BEHALF OF THE BOARD:

M T Clarke - Director

14 September 2026

The directors present their report with the financial statements of the company for the year ended 31 March 2026.

DIVIDENDS

No interim dividends were paid on the ordinary £1 shares during the year. The directors recommend that no final dividend be paid on these shares.

No interim dividend was paid on the A ordinary £1 shares during the year. The directors recommend that no final dividend be paid on these shares.

No interim dividend was paid on the B ordinary £1 shares during the year. The directors recommend that no final dividend be paid on these shares.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2025 to the date of this report.

M T Clarke

C P Tompsett

C A Stuart

Other changes in directors holding office are as follows:

S I Hardie - appointed 4 February 2026

A B Huggins - appointed 4 February 2026

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Lakeview Southern Audit Limited, will be deemed to continue in office under the Companies Act 2006, s.487(2)

ON BEHALF OF THE BOARD:

M T Clarke - Director

14 September 2026

Opinion

We have audited the financial statements of Baxall Construction Ltd (the 'company') for the year ended 31 March 2026 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors' responsibilities for the audit of the financial statements

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

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

We considered the central laws and regulations to the entity and identified those being of significance. We undertook an enquiry of management and those charged with governance to evaluate those of significance and any instances of non-compliance.

Through discussion and, where appropriate, written representation we obtained an understanding of the entity's policies and procedures in relation to fraud risks, including knowledge of any actual, suspected or alleged fraud.

The Senior Statutory Auditor has assessed that the engagement team collectively have the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations within the areas that they are responsible for testing.

Where necessary, documentation scrutiny was used to determine the significance of any instances with non-compliance of central laws and regulations and reviewed disclosures made in the financial statements to ensure these were appropriately made. We also reviewed the journals processed by the finance team and reviewed all transactions outside the normal course of the entity's business.

We communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Irregularities that result from fraud are inherently more difficult to detect from irregularities that result from error.

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

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Adrian Hull (Senior Statutory Auditor)

for and on behalf of Lakeview Southern Audit Limited

Chartered Accountants and

Statutory Auditors

2 Lakeview Stables

Lower St. Clere

Kemsing

Sevenoaks

Kent

TN15 6NL

14 September 2026

TURNOVER

4

50,539,241

38,887,984

Cost of sales

45,929,918

35,578,545

GROSS PROFIT

4,609,323

3,309,439

Administrative expenses

2,825,670

2,518,183

1,783,653

791,256

Other operating income

5

15,600

14,300

OPERATING PROFIT

7

1,799,253

805,556

Interest receivable and similar income

85,144

66,257

1,884,397

871,813

Interest payable and similar expenses

8

156,744

-

PROFIT BEFORE TAXATION

1,727,653

871,813

Tax on profit

9

476,857

220,843

PROFIT FOR THE FINANCIAL YEAR

1,250,796

650,970

PROFIT FOR THE YEAR

1,250,796

650,970

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,250,796

Prior year adjustment

(595,123

)

TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT

55,847

FIXED ASSETS

Tangible assets

10

235,635

125,052

Investments

11

1

1

Investment property

12

364,000

364,000

599,636

489,053

CURRENT ASSETS

Debtors

13

9,731,529

7,615,224

Cash at bank and in hand

4,613,666

1,422,653

14,345,195

9,037,877

CREDITORS

Amounts falling due within one year

14

12,810,060

8,670,802

NET CURRENT ASSETS

1,535,135

367,075

TOTAL ASSETS LESS CURRENT LIABILITIES

2,134,771

856,128

PROVISIONS FOR LIABILITIES

18

131,177

103,330

NET ASSETS

2,003,594

752,798

CAPITAL AND RESERVES

Called up share capital

19

12,927

12,927

Share premium

20

107,464

107,464

Retained earnings

20

1,883,203

632,407

SHAREHOLDERS' FUNDS

2,003,594

752,798

The financial statements were approved by the Board of Directors and authorised for issue on 14 September 2026 and were signed on its behalf by:

M T Clarke - Director

S I Hardie - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 April 2024

12,927

2,080,559

107,464

2,200,950

Prior year adjustment

-

(595,123

)

-

(595,123

)

As restated

12,927

1,485,436

107,464

1,605,827

Changes in equity

Total comprehensive income

-

650,970

-

650,970

Payment to Employee Ownership

Trust

-

(1,503,999

)

-

(1,503,999

)

Balance at 31 March 2025

12,927

632,407

107,464

752,798

Changes in equity

Total comprehensive income

-

1,250,796

-

1,250,796

Balance at 31 March 2026

12,927

1,883,203

107,464

2,003,594

Cash flows from operating activities

Cash generated from operations

1

4,301,277

1,602,483

Finance costs paid

(156,744

)

-

Tax paid

(861,607

)

(9,500

)

Net cash from operating activities

3,282,926

1,592,983

Cash flows from investing activities

Purchase of tangible fixed assets

(177,527

)

(20,723

)

Sale of tangible fixed assets

470

-

Interest received

85,144

66,257

Net cash from investing activities

(91,913

)

45,534

Cash flows from financing activities

EOT shareholders buyout

-

(783,999

)

Net cash from financing activities

-

(783,999

)

Increase in cash and cash equivalents

3,191,013

854,518

Cash and cash equivalents at beginning of year

2

1,422,653

568,135

Cash and cash equivalents at end of year

2

4,613,666

1,422,653

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

31.3.26

31.3.25

£

£

Profit before taxation

1,727,653

871,813

Depreciation charges

66,271

43,326

Loss on disposal of fixed assets

205

-

Finance costs

156,744

-

Finance income

(85,144

)

(66,257

)

1,865,729

848,882

(Increase)/decrease in trade and other debtors

(2,116,307

)

1,034,506

Increase/(decrease) in trade and other creditors

4,551,855

(280,905

)

Cash generated from operations

4,301,277

1,602,483

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2026

31.3.26

1.4.25

£

£

Cash and cash equivalents

4,613,666

1,422,653

Year ended 31 March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

1,422,653

568,135

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.25

Cash flow

At 31.3.26

£

£

£

Net cash

Cash at bank and in hand

1,422,653

3,191,013

4,613,666

1,422,653

3,191,013

4,613,666

Total

1,422,653

3,191,013

4,613,666

1.	STATUTORY INFORMATION

Baxall Construction Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The

Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The company owns one non-trading subsidiary and has provided in full against the investment in that company. The financial statements are prepared for the company only as under section 402 of the Companies Act the company is exempt from preparing group accounts as the non-trading subsidiary is not material for the purpose giving a true and fair view under section 405 of the Companies Act.

Turnover

Turnover represents the net value of construction work carried out on long-term contracts. For details of how this is calculated, see below policy on Amounts Recoverable on Contracts.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

25% on reducing balance

Fixtures & fittings

-

at variable rates on reducing balance

Plant and fixtures are stated at cost less accumulated depreciation.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Investment property is initially measured at cost, then subsequently measured at fair value at each reporting date with changes recognised in profit or loss.

Financial instruments

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 entity after deducting all of its financial liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classified as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains and losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development

Expenditure on research and development is expensed in the year in which it is incurred.

Hire purchase and leasing commitments

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

Where assets are financed by leasing agreements the assets are included in the company's balance sheet at cost less depreciation in accordance with the company's normal accounting policies. The present value of future rentals is shown as a liability. The interest element of rental obligations is charged to the profit and loss account over the period of the lease in proportion to the balance of the capital payments outstanding.

Pension costs and other post-retirement benefits

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

Employee ownership trust

On 13 September 2020, Baxall Construction EOT Limited was incorporated and became the corporate trustee of Baxall Construction Employee Ownership Trust. On 15 December 2020, Baxall Construction EOT Limited acquired 100% of the share capital of Baxall Construction Ltd. The EOT buyout has now been completed.

This is shown as the £1 investment held by the company. This investment relates to the Baxall Construction EOT Limited, company number 12875651. Its registered office address is 2a Maidstone Road, Paddock Wood, Kent TN12 6BU. This is a dormant company held as nominee by Baxall Construction Ltd. This company acts as a trustee under section 138 Companies Act 2006. Baxall Construction Ltd will not exercise any rights attaching to its nominal shareholding in the trustee company without the consent of trustee directors.

Employee benefits

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 costs of any unused holiday entitlement is recognised in the period in which 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.

Amounts recoverable on contracts

Amounts recoverable on contracts, which are included in debtors, are stated at the net sales value of the work done with reference to the stage of completion from valuations applied for in relation to the yearend date after provision for contingencies and anticipated future losses on contracts, less amounts received as progress payments on account. Excess progress payments are included in creditors as payments on account. Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The Company is involved in construction projects which span more than one accounting period. The income and associated costs on these contracts is reviewed over the period of the contract with financial shortfalls highlighted as soon as they become apparent. This process requires the Company to estimate . stage of completion and the corresponding expenses to the income. Whilst these are estimates they are calculated by our professionally qualified Quantity Surveyors and verified by Contracts Managers/Directors within the business. There are clear processes and procedures in place to ensure that from the very start of the tendering process to project completion, the project income and related expenditure is constantly monitored and reviewed.

The investment property is valued periodically by external surveyors between valuations the directors with their own building expertise review the market to determine if any adjustment to the valuation of the investment property is necessary.

4.

TURNOVER

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

An analysis of turnover by geographical market is given below:

31.3.26

31.3.25

£

£

United Kingdom

50,539,241

38,887,984

50,539,241

38,887,984

5.	OTHER OPERATING INCOME

31.3.26

31.3.25

£

£

Rents received

15,600

14,300

6.	EMPLOYEES AND DIRECTORS

31.3.26

31.3.25

£

£

Wages and salaries

6,618,362

5,996,500

Social security costs

762,834

675,887

Other pension costs

140,181

141,844

7,521,377

6,814,231

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

31.3.26

31.3.25

Administration

7

6

Direct costs

78

82

85

88

31.3.26

31.3.25

£

£

Directors' remuneration

527,690

449,328

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

Money purchase schemes

3

1

Information regarding the highest paid director is as follows:

31.3.26

31.3.25

£

£

Emoluments etc

251,213

240,769

The director's are considered to be the only key management personnel.

7.	OPERATING PROFIT

The operating profit is stated after charging:

31.3.26

31.3.25

£

£

Other operating leases

200,000

200,000

Depreciation - owned assets

66,269

43,327

Loss on disposal of fixed assets

205

-

Auditors' remuneration

19,875

19,165

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.3.26

31.3.25

£

£

Other interest

156,744

-