REGISTERED NUMBER: SC399654 (Scotland)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025

FOR

LAURENCE MCINTOSH HOLDINGS LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

7

Report of the Independent Auditors

9

Consolidated Income Statement

13

Consolidated Other Comprehensive Income

14

Consolidated Balance Sheet

15

Company Balance Sheet

16

Consolidated Statement of Changes in Equity

17

Company Statement of Changes in Equity

18

Consolidated Cash Flow Statement

19

Notes to the Consolidated Cash Flow Statement

20

Notes to the Consolidated Financial Statements

21

DIRECTORS:

D MacDonald

F MacDonald

A Callander

SECRETARY:

F MacDonald

REGISTERED OFFICE:

10 Kings Haugh

Peffermill Road

Edinburgh

EH16 5UY

REGISTERED NUMBER:

SC399654 (Scotland)

AUDITORS:

CT Audit Limited

61 Dublin Street

Edinburgh

EH3 6NL

BANKERS:

The Royal Bank of Scotland plc

30 Nicolson Street

Edinburgh

EH8 9DL

SOLICITORS:

Gillespie Macandrew

5 Atholl Crescent

Edinburgh

EH3 8EJ

The trading Company is a UK based construction company specialising in joinery manufacturing and residential redevelopments. The Group's objective is to deliver high-quality construction projects, safely, efficiently and sustainably, while maintaining strong relationships with clients, employees, suppliers and other stakeholders.

During the year, the Group continued to focus on the successful delivery of its existing project portfolio while developing its pipeline of future opportunities. The directors remain focused on maintaining appropriate control over project costs, cashflows and working capital.

REVIEW OF BUSINESS

Development and financial performance during the year

As reported in the Income Statement, revenue has shown a decline in the year to £8,643,502 from £14,304,258 in the previous year. This resulted in a group trading loss for the year of £1,636,404 for the year.

The directors consider that the financial performance for the year reflects challenging market conditions and significant completion costs on historical projects.

Over the last two financial years the business has incurred significant legal and professional expenditure totalling £264,701 (2025: £228,487 and 2024: £36,214) in relation to a disputed project which was resolved in the company's favour. The company also expensed near £100,000 in a new accounting and job costing system. This system is now working well and has substantially improved the timeliness and quality of operational and financial management information.

Gross margins and profitability remain dependent upon the successful management of construction contracts, including the control of labour and material costs, subcontractor performance, programme delivery, variations and commercial negotiations. During the year to 30 June 2025 several contracts were affected by elevated delivery costs and operational performance challenges, leading to a significant reduction in gross profit margin.

Financial position at the reporting date

The Statement of Financial Position shows that the Group's net assets at the year end have decreased from £1,708,671 to £84,236 reflects the loss experienced in the year.

Business model and strategy

The Group’s business model is based on developing long-term relationships with clients and professional advisers and delivering construction projects through a combination of directly employed personnel and specialist subcontractors and suppliers.

The Group seeks to differentiate itself through quality of workmanship, technical expertise, reliability, client service, health and safety performance, competitive pricing and specialist capabilities.

The principal elements of the Group’s strategy are to:

- maintain and develop relationships with existing and prospective clients;

- selectively pursue projects that provide an appropriate risk and return profile;

- maintain effective commercial and financial controls over projects;

- retain and develop suitably skilled employees;

- work collaboratively with key subcontractors and suppliers;

- maintain appropriate levels of liquidity and financial resilience; and

- identify opportunities for sustainable and profitable growth.

Recapitalisation and future investment

The Group has experienced a challenging trading period over the past 2 years, which the directors have proactively addressed through a range of operational and strategic initiatives. Reflecting their confidence in the Group's future prospects and growth opportunities, the Members have recapitalised £1.0 million in September 2026 to strengthen the business balance sheet, together with an intention to provide an additional £0.5 million capital investment to support the next phase of business growth. The recapitalisation in Laurence McIntosh Holdings Ltd will allow for further investment in the trading Company.

PRINCIPAL RISKS AND UNCERTAINTIES

Management continually monitors the key risks facing the Company together with assessing the controls used for managing these risks. The principal risks and uncertainties facing the Company are as follows:

Contract risk - the Company conducts a significant element of its business under customer contracts. Contract risk is managed through robust tendering procedures supported by effective operational management.

Credit risk - the Company acknowledges the importance of maintaining close relationships with its key customers including having established credit control procedures.

Competitor pressure - the market in which the company operates is considered to be competitive and therefore competitor pressure could result in losing contracts to key competitors. The Company manages this risk by providing a quality service and maintaining strong relationships with its key customers.

Reliance on key suppliers - the Company's purchasing activities could expose it to over reliance on key suppliers and inflationary pricing pressure. The company manages this risk by ensuring there is enough breadth in its supplier base and by constantly seeking to find potential alternative suppliers that may be used, if necessary.

Loss of key personnel - this could present significant operational difficulties for the company. Management seek to ensure that key personnel are appropriately remunerated to ensure that good performance is recognised and employees are retained.

Funding Risk - the Company prepares forecasts and budgets to monitor performance including cash flow and overall liquidity.

SECTION 172(1) STATEMENT

In accordance with section 172 of the Companies Act 2006, the directors have regard to the matters set out in section 172(1) when performing their duties.

The directors consider, both individually and collectively, the likely consequences of decisions in the long term and seek to promote the success of the Company for the benefit of its members as a whole.

In doing so, the directors have regard to:

- the likely long-term consequences of decisions;

- the interests of the Company's employees;

- the need to foster the Company's business relationships with customers, suppliers, subcontractors and other stakeholders;

- the impact of the Company's operations on the environment and the communities in which it operates;

- the desirability of maintaining a reputation for high standards of business conduct; and the need to act fairly between members of the Company.

The directors recognise that the Company's long-term success depends upon maintaining strong relationships with employees, customers, suppliers, subcontractors, professional advisers and other stakeholders.

The directors seek to understand stakeholder interests through regular engagement and management reporting. Material stakeholder considerations are taken into account when making significant strategic and operational decisions.

FUTURE OUTLOOK AND GOING CONCERN

The directors remain cautiously optimistic about the Group's prospects.

The construction market continues to present opportunities in bespoke joinery and residential redevelopment, although the directors recognise that the business environment remains subject to uncertainty arising from economic conditions, financing costs, construction cost inflation, labour availability and changes in customer demand.

The trading Company's strategy is therefore focused on sustainable and controlled growth rather than pursuing turnover at the expense of margin or risk.

The trading Company enters the new financial year (2026/27) with an order book of approximately £9 million and a pipeline of prospective opportunities. The directors believe that the Company's established client relationships, experienced management team, operational capabilities and financial position provide a sound platform for future development.

The directors will continue to monitor market conditions closely and will maintain a disciplined approach to project selection, pricing, contract risk and cash management.

The directors have reviewed the Company's forecasts, budgets, cash flow projections and available financing facilities and have considered the Company's principal risks and uncertainties.

Based on this assessment, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.

The directors have also considered a range of reasonably possible downside scenarios, including reductions in forecast revenue, deterioration in project margins, delays in customer receipts and increased operating costs. The results of this assessment indicate that the Company would continue to have sufficient resources to meet its obligations as they fall due.

KEY PERFORMANCE INDICATORS

The directors monitor a range of financial and non-financial performance indicators to assess the Company's performance and progress against its strategic objectives.

Financial KPIs include:-

- Revenue

- Operating Profit

- Operating Margin

- Profit / Loss before tax

- Cash / net debt

- Order book

Relevant non-financial KPIs include project delivery against programme, health and safety performance, quality performance, customer satisfaction, employee retention and environmental performance.

The directors consider these measures appropriate for monitoring the Company's performance, although the precise KPIs reviewed may vary according to the Company's activities and the nature of its project portfolio.

ON BEHALF OF THE BOARD:

D MacDonald - Director

18 September 2026

The directors present their report with the financial statements of the company and the group for the year ended 30 June 2025.

DIVIDENDS

No dividends will be distributed for the year ended 30 June 2025.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 July 2024 to the date of this report.

D MacDonald

F MacDonald

A Callander

POLITICAL DONATIONS AND EXPENDITURE

The business made various small donations to local charities in the year.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group'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 group's auditors are aware of that information.

AUDITORS

The auditors, CT Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

D MacDonald - Director

18 September 2026

Opinion

We have audited the financial statements of Laurence McIntosh Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2025 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 30 June 2025 and of the group's 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 group 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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 seven, 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 group's and the parent 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 group or the parent 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 an auditor's 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 gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company which were contrary to applicable laws and regulations, including fraud. These included but were not limited to the Companies Act 2006.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion.

We focused on laws and regulations that could give rise to a material misstatement in the company's financial statements. Our tests included, but were not limited to:

- Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;

- Reviewing minutes of meetings of those charged with governance;

- Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

- Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.

- Performing analytical procedures to identify any unexpected movements which may indicate irregularities and substantiated the explanations given for these movements.

- Reviewing the accounting policies and the application of these policies to ensure compliance with the standard and consistency of application.

- Specific consideration was given to transactions with related parties.

There are inherent limitations in an audit of financial statements and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would be to become aware of it. We also addressed the risk of management override of internal controls, including reviewing journals and evaluating whether there was evidence of bias by the Directors that represented a risk of material misstatement due to fraud.

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/auditors responsibilities. This description forms part of our auditor's report.

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

Use of our report

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

Barry Truswell (Senior Statutory Auditor)

for and on behalf of CT Audit Limited

61 Dublin Street

Edinburgh

EH3 6NL

18 September 2026

TURNOVER

3

8,643,502

14,304,258

Cost of sales

8,205,914

12,189,748

GROSS PROFIT

437,588

2,114,510

Administrative expenses

2,043,927

1,987,658

(1,606,339

)

126,852

Other operating income

21,964

22,518

OPERATING (LOSS)/PROFIT

5

(1,584,375

)

149,370

Interest payable and similar expenses

6

52,029

55,603

(LOSS)/PROFIT BEFORE TAXATION

(1,636,404

)

93,767

Tax on (loss)/profit

7

(11,969

)

22,224

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(1,624,435

)

71,543

(Loss)/profit attributable to:

Owners of the parent

(1,624,435

)

71,543

(LOSS)/PROFIT FOR THE YEAR

(1,624,435

)

71,543

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(1,624,435

)

71,543

Total comprehensive income attributable to:

Owners of the parent

(1,624,435

)

71,543

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

799,142

923,454

Investments

11

-

-

799,142

923,454

CURRENT ASSETS

Stocks

12

43,943

27,830

Debtors

13

1,198,708

3,612,415

Cash at bank

840,955

984,931

2,083,606

4,625,176

CREDITORS

Amounts falling due within one year

14

1,209,213

2,194,830

NET CURRENT ASSETS

874,393

2,430,346

TOTAL ASSETS LESS CURRENT LIABILITIES

1,673,535

3,353,800

CREDITORS

Amounts falling due after more than one year

15

(1,535,438

)

(1,581,037

)

PROVISIONS FOR LIABILITIES

18

(53,861

)

(64,092

)

NET ASSETS

84,236

1,708,671

CAPITAL AND RESERVES

Called up share capital

19

1,200,820

1,200,820

Share premium

20

224,642

224,642

Retained earnings

20

(1,341,226

)

283,209

SHAREHOLDERS' FUNDS

84,236

1,708,671

The financial statements were approved by the Board of Directors and authorised for issue on 18 September 2026 and were signed on its behalf by:

D MacDonald - Director

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

542,169

616,951

Investments

11

1,350,820

1,350,820

1,892,989

1,967,771

CURRENT ASSETS

Debtors

13

1,849

1,222,312

Cash at bank

338,672

53,069

340,521

1,275,381

CREDITORS

Amounts falling due within one year

14

183,237

185,697

NET CURRENT ASSETS

157,284

1,089,684

TOTAL ASSETS LESS CURRENT LIABILITIES

2,050,273

3,057,455

CREDITORS

Amounts falling due after more than one year

15

1,475,000

1,475,000

NET ASSETS

575,273

1,582,455

CAPITAL AND RESERVES

Called up share capital

19

1,200,820

1,200,820

Share premium

20

224,642

224,642

Retained earnings

20

(850,189

)

156,993

SHAREHOLDERS' FUNDS

575,273

1,582,455

Company's (loss)/profit for the financial year

(1,007,182

)

14,531

The financial statements were approved by the Board of Directors and authorised for issue on 18 September 2026 and were signed on its behalf by:

D MacDonald - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 July 2023

1,200,820

211,666

224,642

1,637,128

Changes in equity

Total comprehensive income

-

71,543

-

71,543

Balance at 30 June 2024

1,200,820

283,209

224,642

1,708,671

Changes in equity

Total comprehensive income

-

(1,624,435

)

-

(1,624,435

)

Balance at 30 June 2025

1,200,820

(1,341,226

)

224,642

84,236

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 July 2023

1,200,820

142,462

224,642

1,567,924

Changes in equity

Total comprehensive income

-

14,531

-

14,531

Balance at 30 June 2024

1,200,820

156,993

224,642

1,582,455

Changes in equity

Total comprehensive income

-

(1,007,182

)

-

(1,007,182

)

Balance at 30 June 2025

1,200,820

(850,189

)

224,642

575,273

Cash flows from operating activities

Cash generated from operations

1

(22,407

)

(439,133

)

Interest paid

(45,016

)

(48,176

)

Interest element of hire purchase payments paid

(7,013

)

(7,427

)

Tax paid

966

(19,513

)

Net cash from operating activities

(73,470

)

(514,249

)

Cash flows from investing activities

Purchase of tangible fixed assets

(48,795

)

(76,457

)

Sale of tangible fixed assets

1,611

-

Net cash from investing activities

(47,184

)

(76,457

)

Cash flows from financing activities

Loan repayments in year

-

(145,833

)

Capital repayments in year

(23,322

)

(49,683

)

Net cash from financing activities

(23,322

)

(195,516

)

Decrease in cash and cash equivalents

(143,976

)

(786,222

)

Cash and cash equivalents at beginning of year

2

984,931

1,771,153

Cash and cash equivalents at end of year

2

840,955

984,931

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

30.6.25

30.6.24

£

£

(Loss)/profit before taxation

(1,636,404

)

93,767

Depreciation charges

167,678

160,004

Loss on disposal of fixed assets

3,818

10,645

Finance costs

52,029

55,603

(1,412,879

)

320,019

(Increase)/decrease in stocks

(16,113

)

26,617

Decrease in trade and other debtors

2,413,707

321,241

Decrease in trade and other creditors

(1,007,122

)

(1,107,010

)

Cash generated from operations

(22,407

)

(439,133

)

2.	CASH AND CASH EQUIVALENTS

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

Year ended 30 June 2025

30.6.25

1.7.24

£

£

Cash and cash equivalents

840,955

984,931

Year ended 30 June 2024

30.6.24

1.7.23

£

£

Cash and cash equivalents

984,931

1,771,153

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.7.24

Cash flow

At 30.6.25

£

£

£

Net cash

Cash at bank and in hand

984,931

(143,976

)

840,955

984,931

(143,976

)

840,955

Debt

Finance leases

(71,896

)

23,322

(48,574

)

Debts falling due after 1 year

(1,475,000

)

-

(1,475,000

)

(1,546,896

)

23,322

(1,523,574

)

Total

(561,965

)

(120,654

)

(682,619

)

1.	STATUTORY INFORMATION

Laurence McIntosh Holdings Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the General Information page.

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries). Control is achieved where the Company has power over an entity, exposure or rights to variable returns from its involvement with the entity and the ability to use its power to affect those returns.

The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control is obtained until the date that control ceases.

Intra-group balances, transactions, income, expenses and unrealised gains and losses arising from intra-group transactions are eliminated in full on consolidation.

The financial statements of the subsidiaries are prepared for the same reporting period as the Group and, where necessary, adjustments are made to align accounting policies with those adopted by the Group.

Going Concern

The directors have, at the time of approving the financial statements, a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

In making this assessment, the directors have considered the Group’s current financial position, cash flow

forecasts, available financing facilities and committed expenditure, together with the principal risks and uncertainties facing the business. In order to further strengthen this assessment the shareholders have recapitalised £1m of debt in the Group to allow for further investment in the trading Company in the future.

The directors have prepared cash flow forecasts covering a period of at least 12 months from the date of approval of these financial statements. These forecasts indicate that the Group will have sufficient cash resources to meet its liabilities as they fall due throughout the assessment period.

The directors are satisfied that there are no material uncertainties related to events or conditions that, individually or collectively, may cast significant doubt on the Group’s ability to continue as a going concern. On this basis, the financial statements have been prepared on the going concern basis.

Significant judgements and estimates

The directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant, actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. Key accounting judgements include:

The Group undertakes construction contracts which take place over a period of time and revenue and profits are recognised as the contracts progress. The extent to which the contract revenue and profits have been earned involve estimating a percentage of completion under ongoing contracts which is based on costs incurred as a proportion of total estimated costs. Management base this assessment on detailed costings and progress reports and their experience of similar contracts in the past. Adjustments are made to reflect any after date events which have a significant impact on the final outcomes expected to be achieved on contracts.

Turnover

Turnover consists of the sales value (excluding VAT) of all work done in the period under contracts to supply goods and services to third parties.

Revenue from construction contracts, including long-term service provision contracts, is recognised by reference to the stage of completion of contract activity at the balance sheet date. This is normally determined by the proportion that contract costs incurred to date bear to the estimated total contract costs, except where this would not be representative of the stage of completion. If the nature of a particular contract means that costs incurred do not accurately reflect the progress of contract activity, an alternative approach is used such as the achievement of pre-determined contract milestones.

Profit attributable to contract activity is recognised if the final outcome of such contracts can be reliably assessed. Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred that it is probable will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred.

When it is probable that contract costs will exceed total contract revenue, the expected loss is immediately recognised as an expense.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 0, is being amortised evenly over its estimated useful life of nil years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

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

Improvements to property

-

6.67% on cost

Plant and machinery

-

20% on reducing balance

Fixtures and fittings

-

20% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

33% on reducing balance