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

The principal activity of the Group comprises the manufacture and sale of memorials and other products in granite, stone, slate and marble. There have not been any significant changes in the Group's principal activities in the year under review.

The Group has in the year made an overall loss of £1.4m on turnover of £6m in comparison to an overall loss in 2024 of £694k on turnover of £6.4m.

The main risks to the business are that, firstly, the death rate in the UK reverts to its previous level following the surge in the death rate as a result of the Covid-19 pandemic; secondly, that there is a continued growth in cremation at the expense of burials, resulting in fewer memorials. The conflicts in Ukraine and the Middle East have both increased cost of shipping and the length of time taken to deliver containers from India. Irregular supply is a major handicap in our efforts to maximise the efficiency of the factory

Dealing firstly with the operating results, operating losses were £437k (excluding gains on property disposals) compared to losses of £979k in the prior year. Turnover has reduced by 5.5% mainly due to branch closures at the end of 2024. Gross margin has improved from 51.6% to 54.6% due to a reduction in costs of importing materials from India. Administration costs have reduced by 12% over the year. This improvement on the operating performance of the Group, is the result of the directors’ restructuring and profit improvement actions, including reductions in staff numbers, overhead control and the closure of less profitable branches.

A key reason for the overall loss is the substantial write off in determining the fair value of property, mainly at Silvertrees Drive (£2.1m). The revaluation gain of £1.6m, adjusted for tax of £0.4m has been included in Other comprehensive income.

The Group balance sheet shows net assets of £7.9m at the end of the financial year. Working capital (as represented by net current assets) increased to £868k.

The improvement in cash is encouraging. It reflects not only property disposals but also improved working capital management. The Group therefore ended the year with a stronger liquidity position than the statutory loss might otherwise suggest.

Overall, the financial statements show a Group which has materially improved its trading position and liquidity, but whose reported results remain heavily influenced by property valuation movements, deferred tax and the accounting treatment of revalued assets. The key commercial priority is now to ensure that the improvement in operating performance is sustained and converted into consistent profitability.

Properties to a value of £875k were sold subsequent to the year end further bolstering the Group cash balance.

The Company’s 29% interest in Baldarroch Crematorium Limited was sold in April 2026. This generated an initial gain of £45k and a cash receipt of £464k. The total potential gain from the disposal could be £529k spread over 5 years.

The Group recognises the importance of environmental responsibilities, monitors its impact on the environment and designs and implements policies to reduce any damage that might be caused by the Group's impact on the environment, including safe disposal of manufacturing waste, recycling and reducing energy consumption. All of this being reflected in the appointment of an environmental officer and the group is a member of the Ethical Stone Register.

Details of the number of employees and related costs can be found in Note 7 to the Financial Statements on pages 23-24. Effort is made by the Group to regularly consult employees through team briefs, staff council meetings on matters of concern in order that their views may be taken into account when making decisions which affect them. The Directors recognise the support of all employees during the year and are grateful for their loyalty.

By order of the board

The directors present their annual report and financial statements for the year ended 31 December 2025.

The principal activity of the company and group continued to be that of the manufacture and sale of memorials and other products in granite, stone, slate, marble, fireplaces and stoves.

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The directors are responsible for preparing the Annual 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 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 group and company, 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;

• 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 group and company will continue in business.

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

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

We have audited the financial statements of A. & J. Robertson (Granite) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's 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.

Opinions on other matters prescribed by the Companies Act 2006

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

• The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

We have nothing to report in respect of the following matters in relation to which 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.

As explained more fully in the directors' responsibilities statement, 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 is 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 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 parent company or to cease operations, or have no realistic alternative but to do so.

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.

Extent to which the audit was capable of detecting irregularities including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulation, including fraud, we designed procedures which include:

• Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud. We corroborated our enquires through our review of board minutes, tax correspondence and correspondence with the group’s solicitors.

• Assessing the extent of compliance with laws and regulations considered to have a material effect on the financial statements or the operations of the group through enquiry and inspection. The most significant regulations are the Companies Act 2006 and UK corporate taxation laws. Other laws and regulations which have been considered are those pertaining to health & safety, employment, data protection, and environmental matters.

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

• Assessing the susceptibility of the group’s financial statements to material misstatement including how fraud might occur. Audit procedures performed include:

• identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;

• understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process. We review any large and unusual items within the accounts and any transactions that are out with the normal course of business;

• challenging assumptions and judgements made by management in its significant accounting estimates;

• identifying and testing journal entries;

• the engagement partner ensures that all audit staff have the necessary competence, capabilities and skills to identify any instances of non-compliance and that they remain alert with regards to such matters throughout the audit;

• the areas of the financial statements which are considered most at risk of fraud have been given consideration. The risk of material misstatement associated with revenue recognition was considered, taking into account the group's system of internal financial controls;

• the company had one subsidiary company throughout the year, which was a non-trading subsidiary company holding property; that company's accounts are audited.

Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the parent 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 parent company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company's loss for the year was £1,647,635 (2024: £696,071).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

A. & J. Robertson (Granite) Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is Robertson Granite, Silvertrees Drive, Westhill, Aberdeen, AB32 6BH.

The group consists of A. & J. Robertson (Granite) Limited and a subsidiary, H Stevenson & Sons Limited.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, as modified by the revaluation of the investment property and certain financial assets and liabilities measured at fair value through profit and loss account. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

• No cash flow statement has been presented for the company.

• Disclosures in respect of financial instruments have not been presented for the company.

The financial statements consolidate the financial statements of A & J Robertson (Granite) Limited and its subsidiary undertaking. The results of subsidiaries acquired or disposed of during the year are included from or to the date that control passes. The parent company has applied the exemption contained in section 408(3) of the Companies Act 2006 and has not included its individual profit and loss account. The consolidated financial statements also include the group share of the results of both associates.

Intra-group transactions, balances, income and expenditure have been eliminated on consolidation.

Baldarroch Crematorium Limited and Brewsterwells Crematorium Limited are associated undertakings. An associate is an entity, being neither a subsidiary nor a joint venture, in which the group holds a long term interest and where the group has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate. The results of associates are accounted for using the equity method of accounting.

These financial statements have been prepared on a going concern basis.

In response to the current economic conditions the directors have carefully considered the risks including an assessment of uncertainty on future trading projection for a period of at least 12 months from the date of signing the financial statements and the extent to which they might affect the preparation of the financial statements on a going concern basis.

Based on this assessment the directors consider that the group maintains an appropriate level of liquidity sufficient to meet the demands of the business. In addition, the group's assets are assessed for recoverability on a regular basis and the directors consider that the group is not exposed to losses on these assets which would affect their decision to adopt the going concern basis.

The company has a strong order book, no borrowing and a strong balance sheet and cash reserves, particularly taking into account the proceeds from the programme of property sales in 2025 and 2026. The associates Baldarroch Crematorium Limited and Brewsterwells Crematorium Limited, are both performing well.

The directors have a reasonable expectation that the group has resources to continue in operational existence for the foreseeable future and there are no material uncertainties that lead to significant doubt upon the group's ability to continue as a going concern. Therefore, the directors have continued to adopt the going concern basis of accounting in preparing these financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

All land and buildings are initially measured at cost (or deemed cost). Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.

All other tangible assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and loss are recognised in profit or loss.

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

In the parent company financial statements, investments in subsidiaries and associates are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method.

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Work in progress is valued on the basis of direct costs plus attributable overheads based on normal levels of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress. The cost of finished goods and work in progress comprises raw materials, direct labour, other direct costs and related production overheads.

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

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

Basic financial assets, which include debtors, loans to the subsidiary and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities, including creditors that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Provisions are recognised when the group has a present legal or constructive obligation at the reporting date as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be estimated reliably.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

The company operates a defined benefit pension scheme under which the Trustees have ceased the accrual of benefits. Payments to this scheme have been made in accordance with actuarial advice and the scheme is now fully funded. The company operates a defined contribution pension scheme. The assets of this scheme are held separately from those of the Company, being invested with an insurance company. The pension cost charge for the year represents the amounts payable in respect of the year covered by these financial statements.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

When the group acts as a lessor, a lease is classified as a finance lease whenever it transfers substantially all the risks and rewards of ownership of the underlying asset to the lessee, either at the end of the lease term or for the major part of the economic life of the asset. All other leases are classified as operating leases. If an arrangement contains both lease and non-lease components, the group allocates the consideration in the contract to the two elements.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Monetary assets and liabilities are translated at the sterling exchange rate prevailing at the balance sheet date.

Revaluation reserves

Prior to the adoption of FRS 102 freehold property was carried at fair value. On transition to FRS 102 the company opted to carry freehold property at deemed cost, net of provision for depreciation and any impairment losses. The revaluation reserve represents net revaluation gains arising prior to the adoption of FRS 102. Appropriate transfers are made from the revaluation reserve to the profit & loss reserve as the associated freehold properties are depreciated, impaired or disposed.

During the year, the company and the group changed its accounting policy in respect of freehold properties from the cost model to the revaluation model. Previously, freehold properties were measured at cost less accumulated depreciation and impairment. Under the new policy, freehold properties are carried at fair value at the reporting date.

The directors consider that adoption of the fair value model provides more reliable and relevant information to users of the financial statements, as it reflects the current market value of the group's property portfolio. This change was considered appropriate in light of recent independent valuations indicating that fair value differs from historical carrying values, and to align the accounting treatment with how these assets are managed and assessed internally.

The change in accounting policy has been applied prospectively. The comparatives remain unchanged compared to prior year's financial statements.

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The whole of the turnover is attributable to the principal activity of the group wholly undertaken in the United Kingdom.

Non audit services provided by auditor include the provision of assistance with compiling the financial statements in a non-managerial capacity; and the provision of routine tax compliance services in a limited number of areas.

The average monthly number of persons (including directors) employed by the group and company during the year was:

Their aggregate remuneration comprised:

The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

Reversals of previous impairment losses have been recognised in profit or loss as follows:

The reversals of previous impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

All the freehold land and buildings were professionally revalued at market values on the basis of existing use as at 31 December 2025.

Valuations are carried out by independent qualified professional valuers with experience in the location and category of the properties being valued. The valuations have been prepared in accordance with recognised professional standards and are based on market value on arm's length basis, reflecting recent comparable transactions and, where appropriate, the highest and best use of the property.

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

All investment properties were professionally revalued at market values on the basis of existing use as at 31 December 2025.

The investment property at Mid Stocket Road was valued by FG Burnett, Chartered Surveyors. The fair value of the investment property was considered to be £300,000.

The investment property at Kelso was valued by Graham & Sibbald, Chartered Surveyors. The fair value of the investment property was considered to be £70,000.

The investment property at 609 Harrow Road, London was valued by Vokins, Chartered Surveyors. The fair value of the investment property was considered to be £115,000.

Details of the company's subsidiaries at 31 December 2025 are as follows:

Registered address for H Stevenson & Sons Limited is Stevenson House, 9 Cemetery Lane, Burnley, Lancs, BB11 5DG.

Details of associates at 31 December 2025 are as follows:

The aggregate of Baldarroch Crematorium Limited share capital and reserves as at 31 December 2025 amounted to £1,467,992 (2024 - £1,268,109). The profit for the year amounted to £199,883 (2024 - £157,446).

The aggregate of Brewsterwells Crematorium Limited share capital and reserves as at 30 September 2025 amounted to £(95,090) (2024 - £(68,637)). The loss for the year amounted to £26,452 (2024 - £17,449 profit). The group has guaranteed £150,000 for bank loans for Brewsterwells Crematorium Limited.

Amounts owed by group undertakings represent interest free loans between the company and its subsidiaries. There are no fixed repayment terms and the loans are repayable on demand.

Virgin Money holds two floating charges over the assets and undertakings of the company.

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

The company operates a defined benefit scheme. The scheme is closed to new entrants.

The amounts included in the balance sheet arising from the company's obligations in respect of defined benefit plans are as follows:

Administration expenses paid by the scheme's employer totalled £(2,067) (2024: £27,895)

FRS 102 limits the amount of a surplus that can be recognised in the balance sheet. It can only be recognised to the extent that the employer is able to recover the surplus either through reduced contributions in the future or through refunds from the plan. The surplus has been restricted to £nil (2024: £nil) on the basis that the scheme has been closed to future accrual since 1998.

The last actuarial valuation was carried out in April 2024, however, FRS 102 does not require the group/company to engage an independent actuary to perform the comprehensive actuarial valuation needed to calculate its defined benefit obligation. Nor does it require a comprehensive actuarial valuation to be carried out annually. In the periods between comprehensive actuarial valuations, if the principal actuarial assumptions have not changed significantly the defined benefit obligation can be measured by adjusting the prior period measurement for changes in employee demographics. There have been no such changes in either the principal assumptions or the employee demographics since April 2024.

Movements in the present value of defined benefit obligations

The defined benefit obligations arise from plans which are wholly or partly funded.

Movements in the fair value of plan assets

Fair value of plan assets at the reporting period end

None of the scheme investments are held in this group. Actuarial valuations are performed every three years. No further payments to the defined benefits pension scheme will be made in accordance with actuarial advice. On 14 March 2012 a secondary floating charge was granted over the assets of the group in favour of the A & J Robertson (Granite) Ltd Pension & Life Assurance Scheme.

Revaluation reserve - This reserve records the value of asset revaluations and fair value movements on assets recognised in other comprehensive income.

Capital redemption reserve - This reserve records the nominal value of shares repurchased by the company.

Profit and loss account - This reserve records retained earnings and accumulated losses.

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

The company has taken advantage of the exemption available under FRS 102 paragraph 33.1A not to disclose related party transactions entered into between two or more members of a group where any subsidiary that is party to the transaction is wholly owned by such a member.

At 31 December 2025 the parent, A&J Robertson (Granite) Limited was due the subsidiary, H Stevenson & Son Limited £472,845. At 31 December 2024 the subsidiary, H Stevenson & Son Limited was due £88,880 to the company. These loans are interest fee and repayable on demand.

The company operates a pension scheme on behalf of employees, with the funds being held separately from the company. The Company's contributions to the defined benefit pension scheme during the year amounted to £nil (2024 - £nil). Other costs incurred by the Company relating to the pension scheme during the year amounted to £(2,067) (2024: £27,895).

The company sold to the associated company Baldarroch Crematorium Limited goods at a total price of £5,213 (2024: £2,667). The company charged Baldarroch Crematorium £6,000 (2024: £6,000) for the provision of administrative services which remains outstanding at 31 December 2025 (2024: £6,000).

The company sold stock to Brewsterwells Crematorium Limited of £580 (2024 - £3,690)

The key management personnel are considered to be the Directors and their remuneration is disclosed in the relevant note to these financial statements.

During the year, Graeme Robertson's private pension scheme purchased 530 Great Western Road, Aberdeen from the company for cash consideration of £195,000.

Mr Graeme D Robertson is the controlling shareholder, Chairman and ultimate controlling party of the group.