Company Registration Number: 03288664
31 MARCH 2026
BRIMS CONSTRUCTION LIMITED
COMPANY INFORMATION
BRIMS CONSTRUCTION LIMITED
CONTENTS
BRIMS CONSTRUCTION LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2026
The Directors present their Strategic Report on the Company for the year end 31 March 2026.
Principal Activity
The principal activity of the Company is providing building and construction services.
Principal Activity
The principal activity of the Company is providing building and construction services.
I am pleased to report that the Company has delivered another excellent year of growth and strong profitability, marking the fifth consecutive year in which Brims has increased its revenue. This continued progress has been achieved while maintaining the financial discipline, quality of earnings and prudent approach to risk that have long underpinned our business. Our focus remains firmly on sustainable growth rather than growth for its own sake, selecting the right projects, maintaining strong client and supply chain relationships and ensuring that the Company remains financially resilient for the long term.
Our strong balance sheet has been further strengthened over the year, increasing to £6.18m (2025: £5.26m) and continues to provide clients, employees and our supply chain with confidence in the long-term financial strength of the Company. It is also important to our supply chain, providing confidence in prompt payment and to our employees where it contributes to job security.
Revenue increased by 8.7% to a record £70.01m representing the highest revenue in its history. Profit before tax increased by 25.8% to £5.31m (2025: £4.22m), representing a pre-tax margin of 7.59% compared with 6.55% in 2025.
Cash generation remains a significant strength of the Company, with consistently strong average month-end cash balances maintained throughout the year. Average cash balances were £14.44m (2025: £15.07m) and the year closed with a cash balance of £19.37m (2025: £17.75m) with no bank debt.
These results reflect the Company's disciplined approach to risk management together with a continued focus on projects where we possess the expertise, resources and contractual framework necessary to deliver successfully. Maintaining this disciplined approach continues to distinguish Brims within an increasingly competitive marketplace.
As a result, the Company continues to make strong progress, supported by a strategy focused on:
Our strong balance sheet has been further strengthened over the year, increasing to £6.18m (2025: £5.26m) and continues to provide clients, employees and our supply chain with confidence in the long-term financial strength of the Company. It is also important to our supply chain, providing confidence in prompt payment and to our employees where it contributes to job security.
Revenue increased by 8.7% to a record £70.01m representing the highest revenue in its history. Profit before tax increased by 25.8% to £5.31m (2025: £4.22m), representing a pre-tax margin of 7.59% compared with 6.55% in 2025.
Cash generation remains a significant strength of the Company, with consistently strong average month-end cash balances maintained throughout the year. Average cash balances were £14.44m (2025: £15.07m) and the year closed with a cash balance of £19.37m (2025: £17.75m) with no bank debt.
These results reflect the Company's disciplined approach to risk management together with a continued focus on projects where we possess the expertise, resources and contractual framework necessary to deliver successfully. Maintaining this disciplined approach continues to distinguish Brims within an increasingly competitive marketplace.
As a result, the Company continues to make strong progress, supported by a strategy focused on:
∙strengthening long-term relationships with existing clients;
∙selectively expanding our portfolio of high-quality clients;
∙maintaining a balanced and sustainable order book across a diverse range of construction sectors;
∙enhancing our reputation and market presence;
∙prioritising profit, cash generation and quality of earnings ahead of revenue growth;
∙maintaining a rigorous and proactive approach to risk management; and
∙embedding the highest standards of health, safety and wellbeing throughout the Company.
During the year, the Company also completed the move to its new Head Office, representing a significant investment in the future infrastructure of the business. The new facility provides a modern and efficient working environment for our people, supports collaboration and operational efficiency, and provides a strong base from which to continue developing the Company in the years ahead.
Page 1
BRIMS CONSTRUCTION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
Increasingly, clients recognise the value of partnering with a financially strong, dependable and delivery-focused contractor. This is reflected in the continued growth of negotiated and repeat business, which remains a cornerstone of our long-term success.
This strategy is designed to ensure that growth remains sustainable and profitable, projects are cash generative, and sufficient financial resources are retained within the Company to support future investment and operational requirements.
Our future secured sales at the end of June 2026 stood at £78.85m (2025: £73.7m), representing our highest level of secured sales at this consistent measurement point. Since June, secured sales have continued to develop and stood at £89.46m at the end of August 2026. This provides a strong platform for the continued delivery of turnover during the forthcoming financial year.
The success of our Company depends on the quality, performance and financial resilience of our supply chain partners. We believe strong supplier relationships contribute directly to better project outcomes, reduced risk and consistent quality. Therefore, whilst we expect high standards and competitive pricing, we treat our suppliers with respect and are committed to paying our suppliers promptly.
We were signatories to the Prompt Payment Code, which was replaced by the Fair Payment Code. The new code has Gold, Silver and Bronze Award categories, underpinned by fair payment principles. We have achieved the Bronze Award, which is for companies that can demonstrate they are paying at least 95% of all invoices within 60 days. As a Company, we remain committed to developing and maintaining strong relationships with our supply chain partners.
Looking forward, we continue to receive a high number of quality tenders and, as in previous years, are selective on the projects we look to undertake. We are confident that our careful approach will continue to deliver positive results.
This strategy is designed to ensure that growth remains sustainable and profitable, projects are cash generative, and sufficient financial resources are retained within the Company to support future investment and operational requirements.
Our future secured sales at the end of June 2026 stood at £78.85m (2025: £73.7m), representing our highest level of secured sales at this consistent measurement point. Since June, secured sales have continued to develop and stood at £89.46m at the end of August 2026. This provides a strong platform for the continued delivery of turnover during the forthcoming financial year.
The success of our Company depends on the quality, performance and financial resilience of our supply chain partners. We believe strong supplier relationships contribute directly to better project outcomes, reduced risk and consistent quality. Therefore, whilst we expect high standards and competitive pricing, we treat our suppliers with respect and are committed to paying our suppliers promptly.
We were signatories to the Prompt Payment Code, which was replaced by the Fair Payment Code. The new code has Gold, Silver and Bronze Award categories, underpinned by fair payment principles. We have achieved the Bronze Award, which is for companies that can demonstrate they are paying at least 95% of all invoices within 60 days. As a Company, we remain committed to developing and maintaining strong relationships with our supply chain partners.
Looking forward, we continue to receive a high number of quality tenders and, as in previous years, are selective on the projects we look to undertake. We are confident that our careful approach will continue to deliver positive results.
The construction industry has an important role to play in reducing carbon emissions and protecting the environment. Brims remains committed to continually improving its environmental performance through responsible procurement, efficient use of resources and investment in lower-carbon operations.
The Company continues to invest in modern plant, electric vehicles where operationally appropriate, and energy-efficient offices to reduce operational carbon emissions.
The Company continues to invest in modern plant, electric vehicles where operationally appropriate, and energy-efficient offices to reduce operational carbon emissions.
As in previous years we have successfully completed a wide variety of projects which are best demonstrated by the following examples:
∙Newcastle International Airport various projects from staircase refurbishment to new Gatehouse. £700,000. Completed May 2025.
∙New Sixth Form Centre in Northumberland. £2.1 million. Completed May 2025.
∙Refurbishment & fit-out of existing office and unit space to provide a showroom, photography studio for Barbour Clothing. £4.5 million. Completed May 2025.
∙Refurbishment of existing retail units with new wall & roof cladding, new internal walls, etc. £1.7 million. Phase 1 completed May 2025 and Phase 2 completed in January 2026.
∙New Housing Innovation & Skills Academy involving full restoration of a derelict engine shed and large glulam extension. £15.6 million. Completed July 2025.
Page 2
BRIMS CONSTRUCTION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
∙Extension & refurbishment of existing offices and factory space including construction of new ROV test tank. £1.8 million. Completed July 2025.
∙High Specification refurbishment of office units including new feature entrances. £1.4 million. Completed August 2025.
∙Various civil work projects at Wilton Teesside. £650,000. Completed August – November 2025.
∙Construction of new business units and workshops. £1.1 million. Completed January 2026.
∙Construction of 20 No 1 bed apartments with shared communal areas. £4.2 million. Completed March 2026.
∙Maintenance works within the Petro Chem sector at North Tees and Wilton for various clients. £2.5 million. Completed through to March 2026.
We also are on the following regional frameworks:
∙NEPO207 Construction Works Framework; Lots 1,2,3,4 & 5
∙NEPO2011 Civil Engineering & Infrastructure Works
∙Home Group Development Contractors DPS Lots 1 & 2
∙NHS Shared Business Services
∙Prosper DPS Agreement
Turnover - £70.01m
Turnover increased to £70.01million, a 8.7% increase on 2025 (2025: £64.43 million).
Operating Profit - £4.80m
Operating profit increased to £4.80 million, a 35.8% increase on 2025 (2025: £3.54 million).
Interest - £545k
Interest received decreased to £545,462, a 22.6% decrease on 2025 (2025: £705,634).
Profit after Tax - £4.01m
Our profit after tax increased by 17.0% to £4,013,148 (2025: £3,429,510).
Cash - £19.37m
Cash balances remained strong throughout the year increasing to £19,368,495 (2025: £17,748,544).
Turnover increased to £70.01million, a 8.7% increase on 2025 (2025: £64.43 million).
Operating Profit - £4.80m
Operating profit increased to £4.80 million, a 35.8% increase on 2025 (2025: £3.54 million).
Interest - £545k
Interest received decreased to £545,462, a 22.6% decrease on 2025 (2025: £705,634).
Profit after Tax - £4.01m
Our profit after tax increased by 17.0% to £4,013,148 (2025: £3,429,510).
Cash - £19.37m
Cash balances remained strong throughout the year increasing to £19,368,495 (2025: £17,748,544).
The principal risks and uncertainties facing the Company are broadly grouped as - competitive, legislative, and financial and appropriate systems for the identification and control of risks are under continuous review.
Page 3
BRIMS CONSTRUCTION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
Financial Risks
The principal financial risks that we run are associated with the ability to properly estimate the costs of carrying out the contracts in which we engage, the risk of properly incurring and controlling these costs, the ability to recover costs under the payment terms of the contracts, and the financial standing of our clients, subcontractors, and suppliers in terms of their ability to discharge their obligations to us.
The Company controls these risks in several ways. The Company is highly selective in the type of work that it tenders for in terms of the project size, location, complexity, and contract duration. The Company specialises in certain types of building projects in line with the areas where we have proven expertise. Tenders are controlled in accordance with a tender control policy and are authorised by directors according to their value and type.
The directors also recognise the importance of financial risk management, and as such there are processes and procedures in place to ensure credit and other financial checks are carried out as appropriate. The Company's liquidity comprises cash and term deposits. No speculative trading in financial instruments is carried out by the Company.
As the traditional cash flow profile of a construction project is cash-generative, the principal risk associated with cash flow is non-payment by clients. To that end we undertake a thorough credit check on all our private sector clients and have had no bad debts this year.
The principal financial risks that we run are associated with the ability to properly estimate the costs of carrying out the contracts in which we engage, the risk of properly incurring and controlling these costs, the ability to recover costs under the payment terms of the contracts, and the financial standing of our clients, subcontractors, and suppliers in terms of their ability to discharge their obligations to us.
The Company controls these risks in several ways. The Company is highly selective in the type of work that it tenders for in terms of the project size, location, complexity, and contract duration. The Company specialises in certain types of building projects in line with the areas where we have proven expertise. Tenders are controlled in accordance with a tender control policy and are authorised by directors according to their value and type.
The directors also recognise the importance of financial risk management, and as such there are processes and procedures in place to ensure credit and other financial checks are carried out as appropriate. The Company's liquidity comprises cash and term deposits. No speculative trading in financial instruments is carried out by the Company.
As the traditional cash flow profile of a construction project is cash-generative, the principal risk associated with cash flow is non-payment by clients. To that end we undertake a thorough credit check on all our private sector clients and have had no bad debts this year.
Health & Safety
The Company recognises the importance of the health and safety of all those employed in its offices and sites and operates policies to ensure that the risks associated with accidents and health are properly managed and controlled. We also recognise that incidents affect our reputation and have a direct financial impact on the Company and our management resources.
To mitigate these risks, we prioritise a safe working environment and promote health, safety and environmental issues and have a comprehensive policy and framework as well as dedicated full-time health & safety managers.
The Company recognises the importance of the health and safety of all those employed in its offices and sites and operates policies to ensure that the risks associated with accidents and health are properly managed and controlled. We also recognise that incidents affect our reputation and have a direct financial impact on the Company and our management resources.
To mitigate these risks, we prioritise a safe working environment and promote health, safety and environmental issues and have a comprehensive policy and framework as well as dedicated full-time health & safety managers.
Project Delivery
The Company recognises that the failure to deliver projects to time, quality or budget, or contractual disputes and supply chain issues that can arise over the scope and/or valuation of contracts make the ultimate outcome of contracts uncertain.
The Company controls these risks by detailed monthly project reporting on each contract providing profit and cash forecasting. We monitor construction progress against programme to re-plan and reassess resources where applicable.
The Company recognises that the failure to deliver projects to time, quality or budget, or contractual disputes and supply chain issues that can arise over the scope and/or valuation of contracts make the ultimate outcome of contracts uncertain.
The Company controls these risks by detailed monthly project reporting on each contract providing profit and cash forecasting. We monitor construction progress against programme to re-plan and reassess resources where applicable.
Page 4
BRIMS CONSTRUCTION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
People
The availability of skilled resources is key to the success of the Company, and it is recognised that skill shortages will become an issue as the economy and construction industry improves.
A training and development programme designed to optimise career satisfaction is therefore being implemented and we are continuing our policy of employing apprentices and trainees.
The availability of skilled resources is key to the success of the Company, and it is recognised that skill shortages will become an issue as the economy and construction industry improves.
A training and development programme designed to optimise career satisfaction is therefore being implemented and we are continuing our policy of employing apprentices and trainees.
Key performance indicators, together with several other measures, are used by the Board to measure the overall progress of the Company against its business objectives and its strategy. A number of the objectives and measures have been redefined to reflect the market conditions.
Health & Safety
Objective - To ensure our operations are carried out safely and without causing injury with a Non Fatal Workplace Injury Rate (NFWIR) below the industry norm.
Measure - The Non-Fatal Workplace Injury Rate is calculated as the total number Injuries with over a 7-day absence in the year multiplied by 100,000 divided by the average number of Employees incl Subcontractors.
2026 Performance - 225 (2025 - 0)
Comment - Our NFWIR was 225 for the year due to having 1 injury with over a 7 day absence. The industry average is 2640. All our workforce continue to work hard to provide a safe working environment on all our sites and offices.
Health & Safety
Objective - To ensure our operations are carried out safely and without causing injury with a Non Fatal Workplace Injury Rate (NFWIR) below the industry norm.
Measure - The Non-Fatal Workplace Injury Rate is calculated as the total number Injuries with over a 7-day absence in the year multiplied by 100,000 divided by the average number of Employees incl Subcontractors.
2026 Performance - 225 (2025 - 0)
Comment - Our NFWIR was 225 for the year due to having 1 injury with over a 7 day absence. The industry average is 2640. All our workforce continue to work hard to provide a safe working environment on all our sites and offices.
Pre Tax Margin
Objective - To deliver a sustainable operating margin for the relevant stage of the economic cycle.
Measure - Profit for the financial year before Tax divided by turnover, expressed as a percentage.
2026 Performance - increased to 7.59% (2025 - 6.55%)
Comment - With increased turnover generating further efficiencies of scale along with improved tender margins there has been an improvement in our profit margin.
Objective - To deliver a sustainable operating margin for the relevant stage of the economic cycle.
Measure - Profit for the financial year before Tax divided by turnover, expressed as a percentage.
2026 Performance - increased to 7.59% (2025 - 6.55%)
Comment - With increased turnover generating further efficiencies of scale along with improved tender margins there has been an improvement in our profit margin.
Page 5
BRIMS CONSTRUCTION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
Cash
Objective - To maintain optimum cash balances throughout the year.
Measure - Net Cash at the year end, in £m. Our key measure is our overall net cash position.
2026 Performance - £19.37m (2025 - £17.75m)
Comment - The Company continued to deliver substantial cash balances throughout the year. The year-end cash at £19.367m was in line with forecasts.
Objective - To maintain optimum cash balances throughout the year.
Measure - Net Cash at the year end, in £m. Our key measure is our overall net cash position.
2026 Performance - £19.37m (2025 - £17.75m)
Comment - The Company continued to deliver substantial cash balances throughout the year. The year-end cash at £19.367m was in line with forecasts.
Order Book
Objective - To secure a balanced visible stream of future profitable workload.
Measure - The total sales expected to be generated from orders received in a financial year, in £m at the same point in time each year.
2026 Performance - £78.9m (2025 - £73.7m)
Comment - Our strategy continues to generate growth & our order book as at end of June stood at £78.9 million with further contracts under negotiation.
Objective - To secure a balanced visible stream of future profitable workload.
Measure - The total sales expected to be generated from orders received in a financial year, in £m at the same point in time each year.
2026 Performance - £78.9m (2025 - £73.7m)
Comment - Our strategy continues to generate growth & our order book as at end of June stood at £78.9 million with further contracts under negotiation.
Section 172 Companies Act 2006 Statement
Section 172 of the Companies Act 2006 requires the Company directors, acting in good faith, to promote the success of the Company for the benefit of its members as a whole, and in doing so has regard to relevant matters set out in section 172(1) of the Companies Act 2006.
In discharging these duties the directors have considered the matters detailed below:
Considering likely consequence of any decision in the long term
Brims Construction operates mainly in the competitive construction market across a variety of sectors with a mixture of public and private sector clients. The company conducts monthly performance reviews on all ongoing contracts and consequences of changes to monthly forecasts are considered for longer term impact.
All new potential construction contracts are subject to a detailed review and approval by the directors to ensure that turnover and profitability are maintained.
Section 172 of the Companies Act 2006 requires the Company directors, acting in good faith, to promote the success of the Company for the benefit of its members as a whole, and in doing so has regard to relevant matters set out in section 172(1) of the Companies Act 2006.
In discharging these duties the directors have considered the matters detailed below:
Considering likely consequence of any decision in the long term
Brims Construction operates mainly in the competitive construction market across a variety of sectors with a mixture of public and private sector clients. The company conducts monthly performance reviews on all ongoing contracts and consequences of changes to monthly forecasts are considered for longer term impact.
All new potential construction contracts are subject to a detailed review and approval by the directors to ensure that turnover and profitability are maintained.
Page 6
BRIMS CONSTRUCTION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
Taking the interests of Brims Construction Limited’s employees into account
Employees are essential to Brims Construction’s interaction with other stakeholders and their commitment ensures successful trading and development of the business. The directors recognise the importance of the employees feeling a strong sense of involvement in the Company. Examples of how this is achieved are as follows:
Employees are essential to Brims Construction’s interaction with other stakeholders and their commitment ensures successful trading and development of the business. The directors recognise the importance of the employees feeling a strong sense of involvement in the Company. Examples of how this is achieved are as follows:
∙Communication – the Company encourages open communication with employees aided by a flat management structure
∙Regular training to develop technical, functional and personal skills to improve performance
∙Regular reviews of employee benefits and conditions.
Fostering Brims Construction Limited’s business relationships with suppliers, customers and others
Fostering strong relationships with clients are key to maintaining and growing the Company and this is done by regular and open communication.
The Company’s suppliers are fundamental to the business and the Directors endeavour to maintain strong long term relationships which ensure the quality of products and services provided and the continuity of the supply chain.
The impact of Brims Construction Limited’s operations on the community and the environment
Brims Construction Limited is committed to ensuring local communities and economies benefit from the company’s presence. This includes opportunities for employment, providing work experience, training and career enhancement across all areas of the Company. The local economy also benefits from the supply chain being afforded the opportunity to participate in our projects.
Brims Construction Limited is committed to the environment as detailed further in the SECR Disclosure noted in the Directors' Report.
Maintaining Brims Construction Limited’s reputation for high standards of business conduct
The directors recognise the importance of maintaining high standards of business conduct and operate according to a full suite of policies, including personnel, ethical behaviour, health and safety, environmental, etc.
Acting fairly between members of the Company
The directors consider its employees, clients, suppliers, shareholders and other service providers to be its major stakeholders. The directors have a responsibility to ensure good relationships are maintained with all stakeholders.
Page 7
BRIMS CONSTRUCTION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
The continued success of Brims is founded on the quality, commitment and professionalism of our people. We remain focused on creating an environment where individuals can develop, contribute and perform to the best of their ability, supported by a culture that promotes collaboration, accountability and continuous improvement.
The Board continues to invest in the tools, resources and support required to enable our people to work safely, efficiently and effectively. We recognise that attracting, developing and retaining talented individuals remains critical to the long-term success of the Company.
On behalf of the Board, I would once again like to thank all our employees for their hard work, dedication and contribution during the year. The results achieved are a direct reflection of their efforts and commitment to delivering successful outcomes for our clients.
The Board continues to invest in the tools, resources and support required to enable our people to work safely, efficiently and effectively. We recognise that attracting, developing and retaining talented individuals remains critical to the long-term success of the Company.
On behalf of the Board, I would once again like to thank all our employees for their hard work, dedication and contribution during the year. The results achieved are a direct reflection of their efforts and commitment to delivering successful outcomes for our clients.
The construction market continues to present a challenging and uncertain environment. Economic conditions, geopolitical events, construction cost pressures and continued caution among developers and investors are affecting the timing and viability of projects across the industry. Industry forecasts currently point to a contraction in overall UK construction activity during 2026, although the outlook varies significantly between sectors, with infrastructure and certain areas of public sector investment continuing to provide opportunities.
Against this background, we continue to see a good level of quality tender opportunities across our core markets. However, we remain conscious that a strong pipeline of opportunities does not necessarily translate into immediate construction activity, with clients continuing to assess project viability, funding and overall affordability before committing to schemes. We therefore remain selective in the projects we pursue, focusing on opportunities where we believe we can deliver successfully and where the commercial and contractual arrangements appropriately reflect the risks involved.
Brims is well positioned to operate through these conditions. Our strong balance sheet, substantial cash resources, absence of bank debt, experienced workforce and established supply chain provide resilience and allow us to take a measured approach to new opportunities. Our continued focus on repeat and negotiated business, together with long-standing client relationships, also provides a degree of stability in a market where the timing of new project starts can be difficult to predict.
The directors remain confident in the long-term prospects of the business but recognise that the current market requires continued discipline and careful management. We will therefore continue to prioritise quality and sustainable profitability over revenue growth for its own sake, while maintaining our focus on cash generation, risk management and successful project delivery. With a strong forward order book and a disciplined approach to securing additional work, we believe Brims is well placed to continue to build on its progress while responding prudently to the challenges and opportunities presented by the market.
Against this background, we continue to see a good level of quality tender opportunities across our core markets. However, we remain conscious that a strong pipeline of opportunities does not necessarily translate into immediate construction activity, with clients continuing to assess project viability, funding and overall affordability before committing to schemes. We therefore remain selective in the projects we pursue, focusing on opportunities where we believe we can deliver successfully and where the commercial and contractual arrangements appropriately reflect the risks involved.
Brims is well positioned to operate through these conditions. Our strong balance sheet, substantial cash resources, absence of bank debt, experienced workforce and established supply chain provide resilience and allow us to take a measured approach to new opportunities. Our continued focus on repeat and negotiated business, together with long-standing client relationships, also provides a degree of stability in a market where the timing of new project starts can be difficult to predict.
The directors remain confident in the long-term prospects of the business but recognise that the current market requires continued discipline and careful management. We will therefore continue to prioritise quality and sustainable profitability over revenue growth for its own sake, while maintaining our focus on cash generation, risk management and successful project delivery. With a strong forward order book and a disciplined approach to securing additional work, we believe Brims is well placed to continue to build on its progress while responding prudently to the challenges and opportunities presented by the market.
Page 8
BRIMS CONSTRUCTION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
The Board remains confident in the long-term prospects of the business and the successful execution of its strategy.
Our disciplined approach to risk management, strong balance sheet, cash generation and focus on quality over volume continue to provide a solid foundation for future success.
The Board will continue to pursue sustainable growth whilst maintaining the financial discipline and operational excellence that have underpinned the Company's performance to date.
Approval
The Board of Directors of Brims Construction Limited has approved and authorised the contents of this report for the year ended 31 March 2026.
Our disciplined approach to risk management, strong balance sheet, cash generation and focus on quality over volume continue to provide a solid foundation for future success.
The Board will continue to pursue sustainable growth whilst maintaining the financial discipline and operational excellence that have underpinned the Company's performance to date.
Approval
The Board of Directors of Brims Construction Limited has approved and authorised the contents of this report for the year ended 31 March 2026.
This report was approved by the board and signed on its behalf.
Page 9
BRIMS CONSTRUCTION LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2026
The directors present their report and the financial statements for the year ended 31 March 2026.
The profit for the year, after taxation, amounted to £4,013,148 (2025 - £3,429,510).
During the year dividends amounting to £3,097,883 (2025: £1,000,000) were paid. The directors do not recommend payment of a final dividend.
The directors who served during the year were:
The financial statements have been prepared on a going concern basis.
The Company meets its day to day working capital requirements through cash generated from operations. At the year end the Company had net current assets of £6,140,350, including cash of £19,368,495 and made a profit before tax of £5,314,345. The Company has no external borrowings and relatively limited financial commitments.
The Company’s forecasts and projections for the next twelve months show that the company should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance.
Based on the factors set out above the directors believe that it remains appropriate to prepare the financial statements on a going concern basis.
The Company meets its day to day working capital requirements through cash generated from operations. At the year end the Company had net current assets of £6,140,350, including cash of £19,368,495 and made a profit before tax of £5,314,345. The Company has no external borrowings and relatively limited financial commitments.
The Company’s forecasts and projections for the next twelve months show that the company should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance.
Based on the factors set out above the directors believe that it remains appropriate to prepare the financial statements on a going concern basis.
Objectives and policies
The Company finances its activities with a combination of cash and short-term deposits. Other financial assets and liabilities, such as trade debtors and trade creditors, arise directly from the Company's operating activities.
Price risk, credit risk, liquidity risk and cash flow risk see disclosures in the Strategic Report in respect of the financial risk management of the Company.
The Company finances its activities with a combination of cash and short-term deposits. Other financial assets and liabilities, such as trade debtors and trade creditors, arise directly from the Company's operating activities.
Price risk, credit risk, liquidity risk and cash flow risk see disclosures in the Strategic Report in respect of the financial risk management of the Company.
Page 10
BRIMS CONSTRUCTION LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
Methodology
Brims SECR reporting is in accordance with UK regulations and includes emissions arising from our fleet, gas and electricity in all sites and offices. To calculate its emissions into equivalent tonnes of carbon dioxide (CO2e) the Government’s carbon conversion factors, updated in 2021, have been used.
We have measured our scopes 1, 2 and 3 emissions and for the year ended 31 March 2026 (with prior year provided for comparison) the energy usage is as follows:
Brims SECR reporting is in accordance with UK regulations and includes emissions arising from our fleet, gas and electricity in all sites and offices. To calculate its emissions into equivalent tonnes of carbon dioxide (CO2e) the Government’s carbon conversion factors, updated in 2021, have been used.
We have measured our scopes 1, 2 and 3 emissions and for the year ended 31 March 2026 (with prior year provided for comparison) the energy usage is as follows:
Principal Energy Efficiency Actions
The Company operates an accredited ISO 14001 Environmental Management System (integrated with ISO 9001 and ISO 45001) which identifies and controls the environmental impact of our activities and services. We continually look to improve our environmental performance and implement a systematic approach to setting environmental objectives.
The move to the new Head Office was completed in September 2025 and now has a full electric installation (no gas) with EV Charging facilities which will result in energy efficiencies continuously gained over the coming years. Teesside Regional Office have replaced lighting with energy efficient lighting.
During the year Brims continued to reduce the environmental impact of its operations through investment in energy-efficient premises, improved fleet management and responsible procurement. The reduction in carbon intensity reflects both operational efficiencies and continued revenue growth.
The Company operates an accredited ISO 14001 Environmental Management System (integrated with ISO 9001 and ISO 45001) which identifies and controls the environmental impact of our activities and services. We continually look to improve our environmental performance and implement a systematic approach to setting environmental objectives.
The move to the new Head Office was completed in September 2025 and now has a full electric installation (no gas) with EV Charging facilities which will result in energy efficiencies continuously gained over the coming years. Teesside Regional Office have replaced lighting with energy efficient lighting.
During the year Brims continued to reduce the environmental impact of its operations through investment in energy-efficient premises, improved fleet management and responsible procurement. The reduction in carbon intensity reflects both operational efficiencies and continued revenue growth.
Page 11
BRIMS CONSTRUCTION LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
The Strategic Report has been prepared in accordance with section 414C(11) of the Companies Act 2006 (Strategic and Directors’ Report) Regulations 2013.
There have been no significant events affecting the Company since the year end.
Under section 487(2) of the Companies Act 2006, Armstrong Watson Audit Limited will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
Page 12
BRIMS CONSTRUCTION LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2026
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙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 to 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.
Page 13
BRIMS CONSTRUCTION LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BRIMS CONSTRUCTION LIMITED
We have audited the financial statements of Brims Construction Limited (the 'company') for the year ended 31 March 2026, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Page 14
BRIMS CONSTRUCTION LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BRIMS CONSTRUCTION LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
Page 15
BRIMS CONSTRUCTION LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BRIMS CONSTRUCTION LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
• We obtained an understanding of laws and regulations that affect the company, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. Key laws and regulations that we identified included the UK Companies Act, tax legislation and occupational health and employment legislation.
• We enquired of the directors, reviewed correspondence with HMRC and reviewed directors meeting minutes for evidence of non-compliance with relevant laws and regulations. We also reviewed controls the directors have in place to ensure compliance.
• We gained an understanding of the controls that the directors have in place to prevent and detect fraud. We enquired of the directors about any incidences of fraud that had taken place during the accounting period.
• The risk of fraud and non-compliance with laws and regulations and fraud was discussed within the audit team and tests were planned and performed to address these risks. We identified the potential for fraud in the following areas: revenue recognition and management override of controls.
• We reviewed financial statements disclosures and tested to supporting documentation to assess compliance with relevant laws and regulations discussed above.
• We enquired of the directors and third-party advisors about actual and potential litigation and claims.
• We performed analytical procedures to identify any unusual or unexpected relationships that might indicate risks of material misstatement due to fraud.
• In addressing the risk of fraud due to management override of internal controls we tested the appropriateness of journal entries and assessed whether the judgements made in making accounting estimates were indicative of a potential bias.
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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
Page 16
BRIMS CONSTRUCTION LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BRIMS CONSTRUCTION LIMITED (CONTINUED)
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Statutory Auditors & Chartered Accountants
Newcastle upon Tyne
Page 17
BRIMS CONSTRUCTION LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2026
Page 18
BRIMS CONSTRUCTION LIMITED
REGISTERED NUMBER: 03288664
BALANCE SHEET
AS AT 31 MARCH 2026
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 21 to 36 form part of these financial statements.
Page 19
BRIMS CONSTRUCTION LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2026
Page 20
BRIMS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
Brims Construction Limited is a private company limited by shares incorporated in England and Wales. The registered office is Ravensworth House, 5th Avenue Business Park, Team Valley, Gateshead, England, NE11 0HF.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see note 3).
The 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 following principal accounting policies have been applied:
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Brims Building Group Limited as at 31 March 2026 and these financial statements may be obtained from Ravensworth House, 5th Avenue Business Park, Team Valley, Gateshead, England, NE11 0HF.
The financial statements have been prepared on a going concern basis.
The Company meets its day to day working capital requirements through cash generated from operations.
The company’s forecasts and projections for the next twelve months show that the company should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance.
Based on the factors set out above the directors believe that it remains appropriate to prepare the financial statements on a going concern basis.
The Company meets its day to day working capital requirements through cash generated from operations.
The company’s forecasts and projections for the next twelve months show that the company should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance.
Based on the factors set out above the directors believe that it remains appropriate to prepare the financial statements on a going concern basis.
Page 21
BRIMS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
2.Accounting policies (continued)
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.
Page 22
BRIMS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
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.
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.
Page 23
BRIMS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
2.Accounting policies (continued)
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable. Profit is recognised on projects that are 80% complete. For projects that are less than 80% complete, profit recognised is based on costs incurred plus the expected percentage contribution of each project rounded down to the nearest 0.5%, capped at 3.5%.
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.
The "percentage of completion method" is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.
The "percentage of completion method" is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.
Assets are classified as held for sale when the directors are committed to a sale plan and the asset is available for immediate sale in its present condition. Such assets are measured at the lower of carrying value and estimated net realisable value, with any impairment recognised in the profit and loss account. Once classified as held for sale, depreciation ceases and the asset is presented within current assets.
The company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's Balance Sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Financial instruments are recognised in the company's Balance Sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Page 24
BRIMS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
2.Accounting policies (continued)
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The company's cash and cash equivalents, trade and most other debtors due within the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after the deduction of all its liabilities.
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The company's cash and cash equivalents, trade and most other debtors due within the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after the deduction of all its liabilities.
Page 25
BRIMS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
2.Accounting policies (continued)
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flows expire, or are settled, or when the company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.
Financial assets are derecognised when their contractual right to future cash flows expire, or are settled, or when the company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
The 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 asset's 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.
Assets held under finance leases are recognised as assets at the lower of the asset's 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.
Page 26
BRIMS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
2.Accounting policies (continued)
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Assessing indicators of impairment
In assessing whether there have been any indicators of impairment of assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability. There has been one impairment recognised in the financial year for £49,731.
Key sources of estimation uncertainty
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.
Valuation of work in progress
Accounting estimates include the valuation of work in progress and profit on long term contracts. The company valuation policy dictates that if a contract is less than 80% complete, the company considers that the contract is at too early a stage to assess with reasonable certainty that the contract will be profitable and so profit recognised is based on costs incurred plus the expected percentage contribution of each project rounded down to the nearest 0.5%, capped at 3.5%. If a contract is greater than 80% complete, the profit recognised is a percentage of estimated total sales for a project based on costs incurred so far.
Depreciation
Depreciation is calculated so as to write off the cost of an asset, less the residual value, over the useful economic life of that asset. An estimate of the useful economic life of assets is detailed in the depreciation accounting policy. The carrying amount is £333,630 (2025 - £981,261).
Page 27
BRIMS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
Page 28
BRIMS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
Page 29
BRIMS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
Page 30
BRIMS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
||||||
|
|
Page 31
BRIMS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
13.Tangible fixed assets (continued)
Page 32
BRIMS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
Page 33
BRIMS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
Page 34
BRIMS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
Share premium account
Profit and loss account
Page 35
BRIMS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
The Company's immediate parent is Brims Building Group Limited , incorporated in England and Wales.
The most senior parent entity producing publicly available financial statements isBrims Building Group Limited . These financial statements are available upon request from Ravensworth House, 5th Avenue Business Park, Team Valley, Gateshead, England, NE11 0HF .
The most senior parent entity producing publicly available financial statements is
Page 36