ACCOUNTS - Final Accounts

Operating profit

The operating profit is stated after charging:

Registered number: 03727552

DIRECTSCALE LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

DIRECTSCALE LIMITED

COMPANY INFORMATION

Directors	D W Batterton
	T J Batterton
	R W Lowe


Registered number	03727552


Registered office	Goodlass Road
	Speke
	Liverpool
	Merseyside
	L24 9HJ


Independent auditors	Langtons Professional Services Limited
	Statutory Auditors & Chartered Accountants
	The Plaza
	100 Old Hall Street
	Liverpool
	L3 9QJ

DIRECTSCALE LIMITED

CONTENTS

	Page
Group strategic report	1
Directors' report	2 - 3
Independent auditors' report	4 - 7
Consolidated statement of comprehensive income	8
Consolidated balance sheet	9 - 10
Company balance sheet	11
Consolidated statement of changes in equity	12
Company statement of changes in equity	13
Consolidated statement of cash flows	14 - 15
Consolidated analysis of net debt	16
Notes to the financial statements	17 - 36

DIRECTSCALE LIMITED

GROUP STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2025

Business review

The Directors are pleased to report continued strong financial performance.

The general economic outlook remains challenging and uncertain in line with general trends, however the Directors continue to look forward with confidence to robust activity and significant profitability.

Principal risks and uncertainties

The management of the business and the execution of the company's strategy are subject to the normal commercial risks of our market sector.

The key business risks affecting the company are considered to relate to Health and Safety, contractual liability and non payment, however, we believe we have effective strategies in place to control and minimise these risks.

Financial key performance indicators

The company uses a range of industry specific, tailored KPIs to monitor the company's profitability and working capital requirements.

This report was approved by the board on 23 September 2026 and signed on its behalf.

D W Batterton

Director

Page 1

DIRECTSCALE LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2025

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

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 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 for the Group's financial statements 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 Group 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 the Group 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £993,208 (2024 - £904,831).

Dividends totalling £348,377 (2024 - £341,930) were proposed and fully paid within the year. No final dividend is proposed.

Directors

The directors who served during the year were:

D W Batterton

T J Batterton

R W Lowe

D L Robinson (resigned 11 December 2025)

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Page 2

DIRECTSCALE LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

Auditors

The auditors, Langtons Professional Services Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 23 September 2026 and signed on its behalf.

D W Batterton

Director

Page 3

DIRECTSCALE LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DIRECTSCALE LIMITED

Opinion

We have audited the financial statements of Directscale Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2025, which comprise the Consolidated statement of comprehensive income, the Consolidated analysis of net debt, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company 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).

In our opinion the financial statements:

∙give a true and fair view of the state of the Group's and of the Parent Company's affairs as at 31 December 2025 and of the Group's profit for the year then ended;

∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

∙have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group 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.

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 or 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.

Page 4

DIRECTSCALE LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DIRECTSCALE LIMITED (CONTINUED)

Other information

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.

Opinion 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 Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Group strategic report and the Directors' report 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 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.

Responsibilities of directors

As explained more fully in the Directors' responsibilities statement set out on page 2, 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 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.

Page 5

DIRECTSCALE LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DIRECTSCALE LIMITED (CONTINUED)

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 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 Group 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:

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit, in respect to fraud, are:

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

However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

Our approach was as follows:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to the reporting framework (FRS 102 and the Companies Act 2006), the relevant tax compliance regulations in the UK and the EU General Data Protection Regulation (GDPR).

We understood how the Company is complying with those frameworks by making enquiries of management.

Through consideration of the results of our audit procedures we were able to either corroborate or provide contrary evidence which was then followed up.

Based on our understanding we designed our audit procedures to identify non-compliance with laws and regulations. Our procedures involved:

• enquiries of management; and
• journal entry testing, with a focus on journals indicating large or unusual transactions based on our
understanding of the business.

We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur by meeting with management to understand where it considered there was susceptibility to fraud. We also considered performance targets and their propensity to influence efforts made by management to manage revenue and earnings. Where the risk was considered to be higher, including areas impacting key performance indicators or management remuneration, we performed audit procedures to address each identified fraud risk or other risk of material misstatement. These procedures included those on revenue recognition detailed above, the assessment of items identified by management as non-recurring and testing manual journals and were designed to provide reasonable assurance that the financial statements were free from material fraud or error.

Page 6

DIRECTSCALE LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DIRECTSCALE LIMITED (CONTINUED)

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.

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 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.

E Roberts (Senior statutory auditor)

for and on behalf of

Langtons Professional Services Limited

Statutory Auditors & Chartered Accountants

The Plaza

100 Old Hall Street

Liverpool

L3 9QJ

23 September 2026

Page 7

DIRECTSCALE LIMITED

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2025

	2025	2024
	£	£


Turnover	21,559,038	19,185,488
Cost of sales	(17,870,609)	(15,469,159)
Gross profit	3,688,429	3,716,329
Administrative expenses	(2,418,876)	(2,534,324)
Other operating income	19,500	19,500
Operating profit	1,289,053	1,201,505
Interest receivable and similar income	162,919	112,412
Interest payable and similar expenses	(55,417)	(60,574)
Profit before taxation	1,396,555	1,253,343
Tax on profit	(403,347)	(348,512)
Profit for the financial year	993,208	904,831

Profit for the year attributable to:
Owners of the Parent Company	993,208	904,831
	993,208	904,831

There were no recognised gains and losses for 2025 or 2024 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2025 (2024:£NIL).

The notes on pages 17 to 36 form part of these financial statements.

Page 8

DIRECTSCALE LIMITED

REGISTERED NUMBER: 03727552

CONSOLIDATED BALANCE SHEET

AS AT 31 DECEMBER 2025

		2025		2024
		£		£

Fixed assets
Tangible assets		958,838		1,014,353
Investment property		580,000		580,000
		1,538,838		1,594,353
Current assets
Debtors	11,181,874		9,782,886
Cash at bank and in hand	808,816		1,431,626
	11,990,690		11,214,512
Creditors: amounts falling due within one year	(3,411,189)		(3,111,140)
Net current assets		8,579,501		8,103,372
Total assets less current liabilities		10,118,339		9,697,725
Creditors: amounts falling due after more than one year		(489,824)		(724,611)
Provisions for liabilities
Deferred taxation	(211,349)		(200,779)
		(211,349)		(200,779)
Net assets excluding pension asset		9,417,166		8,772,335
Net assets		9,417,166		8,772,335

Capital and reserves
Called up share capital	149	149
Revaluation reserve	128,469	128,469
Capital redemption reserve	2	2
Profit and loss account	9,288,546	8,643,715
Equity attributable to owners of the Parent Company	9,417,166	8,772,335
	9,417,166	8,772,335

Page 9

DIRECTSCALE LIMITED

REGISTERED NUMBER: 03727552

CONSOLIDATED BALANCE SHEET (CONTINUED)

AS AT 31 DECEMBER 2025

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 23 September 2026.

D W Batterton	R W Lowe
Director	Director

The notes on pages 17 to 36 form part of these financial statements.

Page 10

DIRECTSCALE LIMITED

REGISTERED NUMBER: 03727552

COMPANY BALANCE SHEET

AS AT 31 DECEMBER 2025

		2025		2024
		£		£

Fixed assets
Investments		400,000		400,000
		400,000		400,000
Current assets
Debtors	6,078,389		5,416,673
Cash at bank and in hand	1,124		625
	6,079,513		5,417,298
Creditors: amounts falling due within one year	(2,474,629)		(2,127,074)
Net current assets		3,604,884		3,290,224
Total assets less current liabilities		4,004,884		3,690,224


Net assets excluding pension asset		4,004,884		3,690,224
Net assets		4,004,884		3,690,224

Capital and reserves
Called up share capital	149	149
Capital redemption reserve	2	2
Profit and loss account	4,004,733	3,690,073
	4,004,884	3,690,224

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 23 September 2026.

D W Batterton	R W Lowe
Director	Director

The notes on pages 17 to 36 form part of these financial statements.

Page 11

DIRECTSCALE LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2025

	Called up share capital	Capital redemption reserve	Revaluation reserve	Profit and loss account	Total equity
	£	£	£	£	£
At 1 January 2024	149	2	128,469	8,080,814	8,209,434
Comprehensive income for the year
Profit for the year	-	-	-	904,831	904,831
Total comprehensive income for the year	-	-	-	904,831	904,831
Contributions by and distributions to owners
Dividends: Equity capital	-	-	-	(341,930)	(341,930)
Total transactions with owners	-	-	-	(341,930)	(341,930)

At 1 January 2025	149	2	128,469	8,643,715	8,772,335
Comprehensive income for the year
Profit for the year	-	-	-	993,208	993,208
Total comprehensive income for the year	-	-	-	993,208	993,208
Contributions by and distributions to owners
Dividends: Equity capital	-	-	-	(348,377)	(348,377)
Total transactions with owners	-	-	-	(348,377)	(348,377)
At 31 December 2025	149	2	128,469	9,288,546	9,417,166

The notes on pages 17 to 36 form part of these financial statements.

Page 12

DIRECTSCALE LIMITED

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2025

	Called up share capital	Capital redemption reserve	Profit and loss account	Total equity
	£	£	£	£
At 1 January 2024	149	2	3,398,587	3,398,738
Comprehensive income for the year
Profit for the year	-	-	633,416	633,416
Contributions by and distributions to owners
Dividends: Equity capital	-	-	(341,930)	(341,930)
Total transactions with owners	-	-	(341,930)	(341,930)

At 1 January 2025	149	2	3,690,073	3,690,224
Comprehensive income for the year
Profit for the year	-	-	663,037	663,037
Total comprehensive income for the year	-	-	663,037	663,037
Contributions by and distributions to owners
Dividends: Equity capital	-	-	(348,377)	(348,377)
Total transactions with owners	-	-	(348,377)	(348,377)
At 31 December 2025	149	2	4,004,733	4,004,884

The notes on pages 17 to 36 form part of these financial statements.

Page 13

DIRECTSCALE LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2025

			2025	2024
			£	£

Cash flows from operating activities
Profit for the financial year	993,208	904,831
Adjustments for:
Depreciation of tangible assets	323,873	358,820
Loss on disposal of tangible assets	(3,973)	6,600
Interest paid	55,417	60,574
Interest received	(162,919)	(112,412)
Taxation charge	403,347	348,512
(Increase) in debtors	(1,398,987)	(1,048,420)
Increase in creditors	42,386	302,913
Corporation tax (paid)	(329,917)	(433,668)
Net cash generated from operating activities	(77,565)	387,750

Cash flows from investing activities
Purchase of tangible fixed assets	(315,954)	(446,474)
Sale of tangible fixed assets	51,570	13,400
Interest received	162,919	112,412
HP interest paid	(38,868)	(30,633)
Net cash from investing activities	(140,333)	(351,295)

Page 14

DIRECTSCALE LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

		2025	2024
		£	£


Cash flows from financing activities
Repayment of/new finance leases	(39,984)	118,181
Dividends paid	(348,377)	(341,930)
Interest paid	(16,549)	(29,941)
Net cash used in financing activities	(404,913)	(253,688)
Net (decrease) in cash and cash equivalents	(622,811)	(217,233)
Cash and cash equivalents at beginning of year	1,431,627	1,648,859
Cash and cash equivalents at the end of year	808,816	1,431,626

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	808,816	1,431,626
	808,816	1,431,626

The notes on pages 17 to 36 form part of these financial statements.

Page 15

DIRECTSCALE LIMITED

CONSOLIDATED ANALYSIS OF NET DEBT

FOR THE YEAR ENDED 31 DECEMBER 2025


At 1 January 2025	Cash flows	New finance leases	Other non-cash changes	At 31 December 2025
£	£	£	£	£

Cash at bank and in hand	1,431,626	(622,810)	-	-	808,816
Debt due after 1 year	(273,014)	-	-	143,859	(129,155)
Debt due within 1 year	(6,990)	-	-	(143,859)	(150,849)
Finance leases	(674,079)	390,665	(350,681)	-	(634,095)
	477,543	(232,145)	(350,681)	-	(105,283)

The notes on pages 17 to 36 form part of these financial statements.

Page 16

DIRECTSCALE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

1.	General information

Directscale Limited is a private limited liability company, limited by shares, incorporated in England and Wales. The registered office is Goodlass Road, Speke, Liverpool, Merseyside, L24 9HJ and the company number is 03727552.

These consolidated financial statements present information about the company and its subsidiaries Tarways Asphalte Co. Limited and Landways Limited.

2.Accounting policies

2.1

Basis of preparation of financial statements

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 Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The presentation currency of these financial statements is pound sterling; the financial statements are rounded to the nearest pound.

2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 January 2014.

Page 17

DIRECTSCALE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Group will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

2.4

Operating leases: the Group as lessee

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

2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.7

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

2.8

Pensions

Defined contribution pension plan

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

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Group in independently administered funds.

Page 18

DIRECTSCALE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

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

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

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

∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

2.10

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 19

DIRECTSCALE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.11

Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Plant & machinery	-	10% - 50% on cost
Motor vehicles	-	25%
Fixtures & fittings	-	10% - 50% on cost

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.

2.12

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.

Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

2.13

Investment property

Investment property is carried at fair value determined annually by the directors and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Consolidated statement of comprehensive income.

2.14

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

2.15

Debtors

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

Page 20

DIRECTSCALE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.16

Cash and cash equivalents

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

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

2.17

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.18

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.

Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

2.19

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

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 or 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 Group's cash and cash equivalents, trade and most other debtors due with 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

Page 21

DIRECTSCALE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.19

Financial instruments (continued)

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 Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies 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.

Derecognised assets/liabilities

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flows expire, or are settled, or when the Group 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 Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Page 22

DIRECTSCALE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.19

Financial instruments (continued)

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

2.20

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

3.	Judgements in applying accounting policies and key sources of estimation uncertainty

The directors have made judgements regarding the valuation of investment property, the depreciation of fixed assets and the value of bad debts.

Turnover

The whole of the turnover is attributable to the principal activity of the company.

All turnover arose within the United Kingdom.

5.	Other operating income
		2025	2024
		£	£

Net rents receivable	19,500	19,500
	19,500	19,500

Other operating lease rentals

88,489

135,465

Page 23

DIRECTSCALE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Fees payable to the Company's auditors for the audit of the consolidated and Parent Company's financial statements

11,400

11,100

8.	Employees
	Staff costs, including directors' remuneration, were as follows:

Group	Group	Company	Company
2025	2024	2025	2024
£	£	£	£


Wages and salaries	1,848,078	1,701,677	-	-
Social security costs	223,942	186,594	-	-
Cost of defined contribution scheme	161,590	161,154	-	-
	2,233,610	2,049,425	-	-

The average monthly number of employees, including the directors, during the year was as follows:

	2025	2024
	No.	No.

Administration	20	18
Production	19	17

	39	35

The Company has no employees other than the directors, who did not receive any remuneration (2024 - £NIL)

Page 24

DIRECTSCALE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

9.	Directors' remuneration
		2025	2024
		£	£

Directors' emoluments	31,304	31,304
Group contributions to personal pension plans.	83,480	83,480
	114,784	114,784

During the year retirement benefits were accruing to 2 directors (2024 - 2) in respect of defined contribution pension schemes.

During the year retirement benefits were accruing to 2 directors (2024 - 2) in respect of personal pension plans.

10.	Interest receivable
		2025	2024
		£	£

	Other interest receivable	162,919	112,412
		162,919	112,412

11.	Interest payable and similar expenses
		2025	2024
		£	£

Bank interest payable	16,549	17,845
Finance leases and hire purchase contracts	38,868	30,633
Other interest payable	-	12,096
	55,417	60,574

Page 25

DIRECTSCALE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Corporation tax
Current tax on profits for the year	389,533	326,674
Adjustments in respect of previous periods	3,244	515

Total current tax	392,777	327,189

Deferred tax
Origination and reversal of timing differences	(5,632)	21,323
Adjustments in respect of previous periods	16,202	-
Total deferred tax	10,570	21,323


	Tax on profit	403,347	348,512

Profit on ordinary activities before tax

1,396,556

1,253,343

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)	349,139	313,336
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	34,762	33,581
Adjustments to tax charge in respect of prior periods	3,244	515
Adjustments to tax charge in respect of prior periods - deferred tax	16,202	1,080
Total tax charge for the year	403,347	348,512

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 26

DIRECTSCALE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

13.	Dividends
		2025	2024
		£	£

	Dividends	348,377	341,930
		348,377	341,930

14.	Intangible assets
	Group and Company

		Goodwill
		£

	At 1 January 2025	19,517
	At 31 December 2025	19,517

	At 1 January 2025	19,517
	At 31 December 2025	19,517
	Net book value
	At 31 December 2025	-
	At 31 December 2024	-

Page 27

DIRECTSCALE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

15.	Tangible fixed assets
	Group

	Plant & machinery	Motor vehicles	Fixtures & fittings	Total
	£	£	£	£
Cost or valuation
At 1 January 2025	2,657,508	758,305	293,053	3,708,866
Additions	256,826	48,745	10,383	315,954
Disposals	(483,725)	(179,870)	(17,173)	(680,768)
At 31 December 2025	2,430,609	627,180	286,263	3,344,052
Depreciation
At 1 January 2025	2,049,066	394,259	251,187	2,694,512
Charge for the year on owned assets	75,704	7,013	13,812	96,529
Charge for the year on financed assets	121,571	105,772	-	227,343
Disposals	(460,474)	(155,525)	(17,173)	(633,172)
At 31 December 2025	1,785,867	351,519	247,826	2,385,212
Net book value
At 31 December 2025	644,742	275,661	38,437	958,840
At 31 December 2024	608,442	364,046	41,865	1,014,353

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
	2025	2024
	£	£


Plant and machinery	638,915	607,767
Motor vehicles	281,478	365,931
	920,393	973,698

Page 28

DIRECTSCALE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

16.	Fixed asset investments

	Company

		Investments in subsidiary companies
		£
	Cost or valuation
	At 1 January 2025	400,000
	At 31 December 2025	400,000

Direct subsidiary undertaking
The following was a direct subsidiary undertaking of the Company:
Name	Registered office	Class of shares	Holding

Tarways Limited

Goodlass Road, Speke,Liverpool, Merseyside,L24 9HJ

Ordinary

100%

Indirect subsidiary undertaking
The following was an indirect subsidiary undertaking of the Company:
Name	Registered office	Class of shares	Holding

Landways Limited

Goodlass Road, Speke,Liverpool, Merseyside,L24 9HJ

Ordinary

100%

Page 29

DIRECTSCALE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

17.	Investment property
	Group

		Freehold investment property
		£
	Valuation
	At 1 January 2025	580,000
	At 31 December 2025	580,000

	Comprising
	Cost	451,531
	Annual revaluation surplus/(deficit):
	2023	128,469
	At 31 December 2025	580,000

The 2025 valuations were made by the directors, on an open market value basis.

If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:
	2025	2024
	£	£

	Historic cost	451,531	451,531
		451,531	451,531

The 2025 valuations were made by the directors, on an open market value basis.

Page 30

DIRECTSCALE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

18.

Debtors

Group	Group	Company	Company
2025	2024	2025	2024
£	£	£	£

Due after more than one year
Other debtors	1,361,394	1,232,351	1,361,394	1,232,351
	1,361,394	1,232,351	1,361,394	1,232,351
Due within one year
Trade debtors	4,614,367	3,841,586	-	-
Other debtors	5,174,596	4,671,836	4,716,995	4,184,322
Prepayments and accrued income	31,517	37,113	-	-
	11,181,874	9,782,886	6,078,389	5,416,673

19.	Cash and cash equivalents
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Cash at bank and in hand	808,816	1,431,626	1,124	625
	808,816	1,431,626	1,124	625

20.	Creditors: Amounts falling due within one year
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Debenture loans	6,990	6,990	6,990	6,990
Bank loans	129,155	-	-	-
Trade creditors	2,369,468	2,274,404	-	-
Amounts owed to group undertakings	-	-	2,467,639	2,120,084
Corporation tax	389,534	326,674	-	-
Other taxation and social security	66,856	85,129	-	-
Obligations under finance lease and hire purchase contracts	288,130	222,482	-	-
Other creditors	126,368	142,414	-	-
Accruals and deferred income	34,688	53,047	-	-
	3,411,189	3,111,140	2,474,629	2,127,074

Page 31

DIRECTSCALE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

21.	Creditors: Amounts falling due after more than one year
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Bank loans	143,859	273,014	-	-
Net obligations under finance leases and hire purchase contracts	345,965	451,597	-	-
	489,824	724,611	-	-

The following liabilities were secured:
	Group	Group
	2025	2024
	£	£


Bank Loans	273,014	273,014
Net obligations under finance leases and hire purchase contracts	634,095	674,079
	907,109	947,093

Details of security provided:

Bank loans and obligations under finance leases and hire purchase contracts are secured on the assets concerned.

The aggregate amount of liabilities repayable wholly or in part more than five years after the balance sheet date is:
	Group	Group
	2025	2024
	£	£


Repayable by instalments	143,859	273,014
	143,859	273,014

Page 32

DIRECTSCALE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

22.	Loans
	Analysis of the maturity of loans is given below:
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Amounts falling due within one year
Bank loans	129,155	-	-	-
Debenture loans	6,990	6,990	6,990	6,990
	136,145	6,990	6,990	6,990


Amounts falling due after more than 5 years
Bank loans	143,859	273,014	-	-
	143,859	273,014	-	-
	280,004	280,004	6,990	6,990

23.	Hire purchase and finance leases
	Minimum lease payments under hire purchase fall due as follows:
		Group	Group
		2025	2024
		£	£

Within one year	354,826	294,883
Between 1-5 years	456,826	526,284
	811,652	821,167

24.	Financial instruments
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

	Financial assets
	Financial assets measured at fair value through profit or loss	808,816	1,431,626	1,124	625

Financial assets measured at fair value through profit or loss comprise cash at bank and in hand.

Page 33

DIRECTSCALE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

25.	Deferred taxation
	Group

	2025	2024
	£	£

At beginning of year	200,779	179,456
Charged to profit or loss	10,570	21,323
At end of year	211,349	200,779

The provision for deferred taxation is made up as follows:
	Group	Group	Company	Company
	2025	2024	2025	2024
	£	£	£	£

Accelerated capital allowances	197,647	207,994	-	-
Short term timing differences	(5,743)	(7,215)	-	-
Capital gains/(losses)	19,445	-	-	-
	211,349	200,779	-	-

26.	Share capital
		2025	2024
		£	£

Allotted, called up and fully paid

900 (2024 - 900) Ordinary shares of £0.10 each	90	90
40 (2024 - 40) Ordinary A shares of £0.50 each	20	20
20 (2024 - 20) Ordinary B shares of £0.50 each	10	10
240 (2024 - 240) Ordinary C shares of £0.10 each	24	24
5 (2024 - 5) Ordinary D shares of £1.00 each	5	5

	149	149

27.

Reserves

Revaluation reserve

Revaluation reserve includes all current and prior period revaluations.

Profit & loss account

Includes all current and prior period retained profit and losses less dividends paid.

Page 34

DIRECTSCALE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

28.	Pension commitments

The Group operates a defined contributions pension scheme.

The assets of the scheme are held separately from those of the Group in an independently administered fund.

The pension cost charge represents contributions payable by the Group to the fund and amounted to £125,590 (2024 £125,154).

Contributions totalling £25,465 (2024 £17,159) were payable to the fund at the balance sheet date.

During the year, the company made contributions to the directors personal pension plans.

Contributions paid in respect of the directors in aggregate is £36,000 (2024 £36,000).

29.	Commitments under operating leases
	At 31 December 2025 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Not later than 1 year	57,229	120,184	-	-
Later than 1 year and not later than 5 years	30,347	80,223	-	-
	87,576	200,407	-	-

30.

Transactions with directors

At 31st December 2025, there was a balance due from the directors, D W and T J Batterton, totalling £4,627,758 (2024 £4,119,086). Interest has been charged on the loans at 2.25% up to 5th April 2025 and 3.75% from 6th April 2025 (2024 2.25%) per annum.

Also included in other debtors is an amount due from R Lowe, a director, of £50,238 (2024 £50,238) and amount due from D Robinson, a director, of £24,000 (2024 £Nil).

All the above loans are unsecured.

Page 35

DIRECTSCALE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

31.	Related party transactions

The company has taken advantage of the exemption conferred under FRS102, as a parent company, not to disclose balances and transactions with other group companies, as consolidated accounts are available.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

During the year dividends totalling £348,377 (2024 £341,930) were paid to the directors.

Tarways Asphalte Retirement Benefits Scheme

During the year, Tarways Asphalte Co Limited paid rent to Tarways Asphalte Retirement Benefits Scheme totalling £30,000 (2024 £30,000).

32.	Controlling party

The controlling party is D W Batterton, by virtue of his shareholding.

Page 36