REGISTERED NUMBER: 07476657 (England and Wales)

Strategic Report,

Report of the Directors and

Financial Statements

For The Year Ended

31 December 2025

for

COMPLETE ROOFING SYSTEMS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Statement of Directors' Responsibilities

6

Report of the Independent Auditors

7

Profit and Loss Account

11

Other Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Notes to the Financial Statements

15

DIRECTORS:

Mr S J Lennon

Mr J R Lennon

Mrs F Lennon

REGISTERED OFFICE:

Unit 21 Adlington Court

Birchwood

Warrington

Cheshire

WA3 6PL

REGISTERED NUMBER:

07476657 (England and Wales)

SENIOR STATUTORY AUDITOR:

Steven John Collings FCCA

AUDITORS:

Leavitt Walmsley Associates Limited

Chartered Certified Accountants and

Statutory Auditors

8 Eastway

Sale

Cheshire

M33 4DX

The directors present their strategic report for the year ended 31 December 2025.

The principal activity of the company during the year was that of a roofing contractor.

REVIEW OF BUSINESS

The company continues to specialise in roofing. Market conditions in 2025 remained challenging across the construction sector; however, the company continued to demonstrate resilience, maintaining stronger customer relationships, disciplined cost control and a focus on delivering high-quality projects.

The year ended 31 December 2025 recorded turnover of £16.6m (2024: £26.5m). The reduction in turnover was primarily attributable to the wider downturn experienced across the construction sector during the year, resulting in delays to a number of projects. Despite these challenging market conditions, the directors are pleased with the resilience shown by the business during the year. The company continued to adopt a disciplined and selective approach to tendering opportunities, focusing on projects that align with its expertise and risk appetite. This strategy helped maintain healthy margins whilst managing risk exposure during a period of reduced market activity.

The company's gross profit margin was 26.0% as opposed to 27.5% in the prior year. Whilst margins reduced slightly, they remained at a healthy level and reflect continued focus on direct cost control and disciplined project delivery during a challenging trading period.

Raw material supply was found to be stable throughout the year and the company continued to deliver projects successfully despite challenging market conditions.

Turnover reduced during the year as a result of the downturn experienced across the construction sector, which led to delays in a number of projects and reduced levels of activity. As a consequence, profit before tax decreased to £30k (2024: £2.7m).

The directors took the strategic decision to maintain the company's overhead structure and retain its skilled workforce throughout the period, avoiding redundancies and preserving operational capacity for future growth. This approach was supported by the company's strong balance sheet and healthy liquidity position and reflects the directors' confidence in the long-term prospects of the business. Administrative expenses were £4.3m compared with £4.6m in the prior year.

During the year, the company continued to invest in technology, systems and infrastructure to improve operational efficiency and strengthen its capabilities. The company remained financially robust throughout the year, reporting net assets of £2.9m and cash balances of £2.6m at the year end. The directors believe this leaves the business well positioned to benefit as delayed projects progress and activity levels across the construction sector recover.

PRINCIPAL RISKS AND UNCERTAINTIES

Wider geopolitical uncertainty and economic pressures continue to create volatility within both consumer demand and supply chains. Whilst inflationary pressures and interest rates have stabilised compared with recent years, uncertainty remains regarding future economic conditions and the potential impact on both customers and suppliers.

The company actively manages these risks through a disciplined commercial approach. Tendered prices are generally limited to defined validity periods to reduce exposure to material price fluctuations, whilst close relationships with suppliers and manufacturers enable the company to monitor market developments and respond promptly to cost pressures. Where appropriate, contractual provisions are incorporated to provide protection against significant increases in input costs over the life of a project.

The directors continue to monitor these risks closely and remain satisfied that the company is well positioned to respond to changing market conditions.

KEY PERFORMANCE INDICATORS

The directors use a number of Key Performance Indicators (KPIs) to monitor and assess the health of the business.

Turnover

£16.6m (2024: £26.5m)

Gross profit

£4.3m (2024: £7.3m)

Gross profit margin

26.0% (2024: 27.5%)

Operating profit

£28k (2024: £2.7m)

Net current assets

£2.7m (2024: £3.4m)

Net assets

£3.0m (2024: £3.6m)

Cash and cash equivalents

£2.6m (2024: £4.2m)

Key performance indicators (KPIs) include revenue, gross profit and operating profit. These KPIs are selected as 'key' on the basis that the company is driven by gross profit margins on sales and the directors strive to keep margins as high as possible in order to preserve profit. Operating profit is also a KPI on the grounds that it is an indicator of business performance, whereas profit before tax may include exceptional items.

Non-financial KPIs

Non-financial KPIs include customer retention, sales volumes, health and safety performance, employee retention and the successful delivery of projects to customer expectations.

FUTURE DEVELOPMENTS

The company continues to invest in its operational infrastructure, systems and equipment during 2026, supporting efficiency improvements, sustainability initiatives and long-term growth.

The company remains committed to its employees and their working environment. During the year, the business successfully achieved ISO 9001, ISO 14001 and ISO 27001 accreditation, demonstrating its commitment to quality management, environmental responsibility and information security. The company also continued to invest in its digital systems and Power BI reporting suite, enhancing management information and supporting data-driven decision making across the business.

The directors remain confident in the long-term prospects of the business. Whilst market conditions remained challenging during 2025, the company has retained the resources, expertise and operational capacity required to respond to increased demand as construction activity and project pipelines recover.

ON BEHALF OF THE BOARD:

Mr S J Lennon - Director

7 September 2026

The directors present their report with the financial statements of the company for the year ended 31 December 2025.

DIVIDENDS

Interim dividends were declared during the year amounting to £612,000 (2024: £741,000).

The directors have recommended that no final dividend be paid for the year ended 31 December 2025 (2024: no final dividend).

DIRECTORS

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

Mr S J Lennon

Mr J R Lennon

Mrs F Lennon

FINANCIAL INSTRUMENTS

The company uses financial instruments and these include a bank loan, cash and various items such as trade debtors and creditors that arise directly from its operations.

The existence of these financial instruments exposes the company to a number of financial risks, which are described in more detail below:

Liquidity risk

The company seeks to manage financial risks by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash safely and profitably.

Credit risk

The company's principal financial assets are cash and trade debtors. The credit risk associated with trade debtors is irrecoverable debts. The company manages this risk through thorough credit checks on customers and the creditworthiness of customers is monitored continuously.

Interest rate risk

The company finances its operations primarily through retained profits and bank accounts. The company is exposed to interest rate risk in the event of an increase in such rates by the Bank of England. The company seeks to minimise this risk through preserving sufficient cash in order to meet its obligations under the terms of the bank loan.

The table below includes trade debtors and trade creditors which do not attract interest and are therefore subject to fair value interest rate risk.

Fixed

Floating

Zero

Total

£

£

£

£

Financial assets

Cash

-

2,572

-

2,572

Trade and other debtors

-

-

1,844

1,844

Amounts recoverable on contracts

-

-

257

257

Fixed

Floating

Zero

Total

£

£

£

£

Financial liabilities

Trade and other creditors

-

-

1,308

1,308

Deferred income

-

-

137

137

Accruals

-

-

490

490

Bank loan

-

21

-

21

Finance leases

124

-

-

124

FUTURE DEVELOPMENTS

Future developments are addressed in the strategic report.

GOING CONCERN

As at 31 December 2025, the company had free cash flow of £2.6m and access to undrawn bank facilities in the form of an invoice factoring account. It also had a strong forward order book.

The uncertainty as to the future impact on the company of external factors has been considered as part of the company's adoption of the going concern basis. The Board has completed an assessment as to the potential impact to the company in the event of certain downside scenarios, including a significant deterioration in revenues and productivity. A key component of this exercise is to highlight future discretionary expenditure on projects which could be avoided or deferred in order to protect the company's cash balances.

The financial statements have been prepared on a going concern basis which the directors believe is appropriate for the following reasons. The company currently meets its day-to-day working capital requirements through its cash balances and working capital. The directors have prepared and reviewed budgets and forecasts for a period up to 31 December 2026, which they consider to be achievable given the current levels of trading. The directors are confident the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

DISCLOSURE IN THE STRATEGIC REPORT

The company has chosen in accordance with Companies Act 2006, s414C(11) to set out in the strategic report information required by The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008m, sch 7 to be contained in the directors' report. It has done so in respect of future developments.

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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

Mr S J Lennon - Director

7 September 2026

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.

Opinion

We have audited the financial statements of Complete Roofing Systems Limited (the 'company') for the year ended 31 December 2025 which comprise the Profit and Loss Account, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 December 2025 and of its loss 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, the Report of the Directors and the Statement of Directors' Responsibilities, 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 six, 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:

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses, and to respond appropriately to fraud or suspected fraud identified during the audit.

It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

- obtained an understanding of the nature of the industry and sector, including the legal and regulatory frameworks that the company operates in and how the company is complying with the legal and regulatory framework;

- inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud; and

- discussed matters about non-compliance with laws and regulations and how fraud may occur including an assessment of how, and where, the financial statements may be susceptible to fraud.

As a result of these procedures, we consider the most significant laws and regulations that have a direct impact on the financial statements are:

- FRS 102;

- Companies Act 2006; and

- Tax legislation.

We performed audit procedures to detect non-compliance which may have a material impact on the financial statements which included reviewing financial statement disclosures, inspecting correspondence with tax authorities and regulators.

The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to health and safety and environmental regulations. We performed audit procedures to inquire of management and those charged with governance as to whether the company is in compliance with these laws and regulations and reviewing any notices published by the Health and Safety Executive. We also made inquiries with those charged with governance to identify any live and material claims or disputes with customers.

The audit engagement team identified the risk of management override of controls, revenue recognition and estimates in the valuation of stock as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included, but were not limited to:

- Testing manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business. This also included an assessment of whether the judgements made in making accounting estimates are indicative of potential bias.

- Testing a sample of revenue transactions recognised either side of the balance sheet date to determine whether revenue was recognised in the correct period.

- Challenging judgements and estimates applied in the valuation of work in progress and reviewing post-year end performance to determine whether these estimates were reasonable.

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

-

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. 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.

-	Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.

-	Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

-

Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Report of the Auditors to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Report of the Auditors. However, future events or conditions may cause the company to cease to continue as a going concern.

-	Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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.

Steven John Collings FCCA (Senior Statutory Auditor)

for and on behalf of Leavitt Walmsley Associates Limited

Chartered Certified Accountants and

Statutory Auditors

8 Eastway

Sale

Cheshire

M33 4DX

7 September 2026

TURNOVER

3

16,646,891

26,523,727

Cost of sales

12,319,473

19,225,186

GROSS PROFIT

4,327,418

7,298,541

Administrative expenses

4,299,233

4,565,844

OPERATING PROFIT

5

28,185

2,732,697

Interest receivable and similar income

16,776

979

44,961

2,733,676

Interest payable and similar expenses

6

15,112

23,947

PROFIT BEFORE TAXATION

29,849

2,709,729

Tax on profit

7

135,613

692,863

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(105,764

)

2,016,866

(LOSS)/PROFIT FOR THE YEAR

(105,764

)

2,016,866

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(105,764

)

2,016,866

FIXED ASSETS

Intangible assets

9

-

28,750

Tangible assets

10

363,401

320,926

363,401

349,676

CURRENT ASSETS

Stocks

11

46,275

-

Debtors

12

2,462,682

4,413,808

Cash at bank

2,572,472

4,233,482

5,081,429

8,647,290

CREDITORS

Amounts falling due within one year

13

2,405,252

5,230,716

NET CURRENT ASSETS

2,676,177

3,416,574

TOTAL ASSETS LESS CURRENT LIABILITIES

3,039,578

3,766,250

CREDITORS

Amounts falling due after more than one year

14

(86,620

)

(131,736

)

PROVISIONS FOR LIABILITIES

18

(52,978

)

(16,770

)

NET ASSETS

2,899,980

3,617,744

CAPITAL AND RESERVES

Called up share capital

19

10

10

Retained earnings

20

2,899,970

3,617,734

SHAREHOLDERS' FUNDS

2,899,980

3,617,744

The financial statements were approved by the Board of Directors and authorised for issue on 7 September 2026 and were signed on its behalf by:

Mr S J Lennon - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

10

2,341,868

2,341,878

Changes in equity

Dividends

-

(741,000

)

(741,000

)

Total comprehensive income

-

2,016,866

2,016,866

Balance at 31 December 2024

10

3,617,734

3,617,744

Changes in equity

Dividends

-

(612,000

)

(612,000

)

Total comprehensive income

-

(105,764

)

(105,764

)

Balance at 31 December 2025

10

2,899,970

2,899,980

1.	STATUTORY INFORMATION

Complete Roofing Systems Limited 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.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

The company's functional and presentation currency is sterling.

Going concern

As at 31 December 2025, the company had cash of £2.6m and had a strong forward order book.

The uncertainty as to the future impact on the company of external factors has been considered as part of the company's adoption of the going concern basis. The directors have completed an assessment as to the potential impact to the company in the event of certain downside scenarios, including a significant deterioration in revenues and productivity.

The financial statements have been prepared on the going concern basis which the directors believe is appropriate for the following reasons:

- The company currently meets its day-to-day working capital requirements through cash balances

- The directors are confident the company has adequate resources to continue in operational existence for the foreseeable future.

- Budgets and forecasts indicate the company will continue to be a going concern.

Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.

Financial Reporting Standard 102 - reduced disclosure exemptions

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

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d);

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirement of paragraph 33.7.

Critical accounting judgements and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events which are believed to be reasonable under the circumstances.

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, rarely equal actual results. The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below:

Useful economic lives of property, plant and equipment and intangible assets

The annual depreciation charge for property, plant and equipment is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values (of both tangible and intangible assets) are re-assessed annually and are amended, when necessary, to reflect current estimates. Changes in residual values and economic lives are accounted for as a change in accounting estimate under Section 10 of FRS 102 'Accounting Policies, Estimates and Errors'.

Construction contract revenue

The company enters into long-term contracts in the normal course of business. The nature of such contracts introduces judgement and uncertainty into the recognition of revenue and profit for the business. Certain contracts may be subject to disputes. Such contracts have been reviewed by the directors and appropriate provisions have been made.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover is recognised to the extent that it is probable (i.e. more likely than not) that the economic benefits will flow to the company and the revenue can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, VAT and other sales taxes.

Construction contracts

Turnover on long-term construction contracts is recognised in accordance with the stage of completion of contractual obligations to the customer. The stage of completion of the contract at the balance sheet date is assessed by reference to the value of work done.

When the outcome of a contract cannot be assessed reliably, contract revenue and associated costs are recognised as revenue and costs respectively by reference to the stage of completion of the contract activity at the balance sheet date. Full provision is made for losses on all contracts in the period in which the loss is first foreseen.

Where the outcome of a contract cannot be estimated reliably, contract revenue is recognised only to the extent of contract costs incurred that it is probable will be recoverable, and contract costs are recognised in the period in which they are incurred.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

15% on cost

Tangible fixed assets are measured under the cost model in FRS 102, Section 17 'Property, Plant and Equipment'. Residual values of fixed assets are calculated on current prices which the assets would fetch in the open market if they were of the age and condition expected at the end of their useful economic lives. Profits or losses on the disposal of fixed assets are included in the calculation of profit for the period.

The company does not have a capitalisation threshold.

If factors such as a change in how an asset is used, technological advancement, or changes in market prices indicate that the residual value or useful life of an asset has changed since the most recent balance sheet date, the company reviews its previous estimates and, if current expectations differ, amends the residual value, amortisation method or useful life, accounting for this as a change in accounting estimate.

Tangible fixed assets are derecognised on disposal, with the difference between the net disposal proceeds and the carrying amount recognised in profit or loss.

Impairment of fixed assets

At each balance sheet date, the directors review the useful lives and residual values of the company's assets and these are revised as necessary. Any revisions to useful lives and residual values are applied prospectively from the date of change.

Debtors

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

Amounts recoverable on contracts

Long-term contract balances included in amounts recoverable on contracts are stated at cost plus attributable profit, after provision has been made for any foreseeable losses and the deduction of applicable payments on account.

Financial instruments

The company has elected to apply (where applicable) the provisions of FRS 102, Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' to all of its financial instruments.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument.

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

Basic financial assets

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

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each balance sheet 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.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company 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.

Classification of 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 deducting all its liabilities.

Basic financial liabilities

Basic financial liabilities, including trade and other creditors and accruals are initially recognised at transaction price unless the arrangement constitutes a financing arrangement, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

Debt instruments are subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.

Equity instruments

Equity instruments issued by the company are recorded at the fair value of 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 company.

Tax charge and current tax

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item has been recognised in other comprehensive income or directly in equity. In this case, the tax is recognised in other comprehensive income or directly in equity respectively.

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

Deferred tax

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

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

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

Deferred tax balances are not recognised in respect of permanent differences. Deferred tax is determined using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to the profit and loss account using the effective interest method under Section 11 of FRS 102 ‘Basic Financial Instruments’. The capital element of the liability is presented in the balance sheet as a liability and split between the portion falling due within one year and the portion falling due after more than one year.

Pension costs and other post-retirement benefits

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

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown as accruals in the balance sheet. The assets of the scheme are held separately from the company in independently administered funds.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible into known amounts of cash with insignificant risk of change in value.

Employee benefits

Short-term employee benefits are measured at the undiscounted amount expected to be paid in exchange for the employee's services to the company. Where employees have accrued short-term benefits which the entity has not paid by the balance sheet date, an accrual is recognised within creditors: amounts falling due within one year with an associated expense in profit or loss.

3.

TURNOVER

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

An analysis of turnover by class of business is given below:

31.12.25

31.12.24

£

£

Roofing

16,646,891

26,523,727

16,646,891

26,523,727

4.	EMPLOYEES AND DIRECTORS

31.12.25

31.12.24

£

£

Wages and salaries

2,139,510

2,369,554

Social security costs

305,114

255,968

Other pension costs

63,275

75,163

2,507,899

2,700,685

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

31.12.25

31.12.24

Administrative

16

17

Contracts

18

19

Productive

16

17

50

53

31.12.25

31.12.24

£

£

Directors' remuneration

98,627

104,873

Directors' pension contributions to money purchase schemes

1,634

1,724

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

Money purchase schemes

3

3

5.	OPERATING PROFIT

The operating profit is stated after charging:

31.12.25

31.12.24

£

£

Depreciation - owned assets

34,679

16,818

Depreciation - assets on hire purchase contracts

47,190

88,908

Loss on disposal of fixed assets

26,548

-

Auditors' remuneration

16,000

15,000

Operating lease rentals

112,874

129,652