FOR THE YEAR ENDED 31 DECEMBER 2025
SOLUM (SW) LTD
COMPANY INFORMATION
SOLUM (SW) LTD
CONTENTS
SOLUM (SW) LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The Directors present their Strategic Report on the Company for the year ended 31 December 2025.
Trading
The company operates in the groundworks, enabling works and civil engineering sectors.
Turnover increased by 13% to £14.8m, exceeding both plan and forecast. However, the gross profit margin of 14.5% was below expectations.
Trading was strong during the early part of 2025, when much of the increase in turnover was generated. Activity moderated from the summer onwards, reflecting a slowdown in the construction industry and wider economic uncertainty.
Two contracts delivered single-digit gross margins during the year and had a significant adverse effect on overall profitability. Both contracts concluded in early 2026, with the final account position showing a modest improvement against the margins reported during 2025. Strong delivery across other projects within the company’s diversified portfolio helped to mitigate this impact.
Profit after tax for the year in the company was £96,117. Although below plan, this was an improvement on 2024 and represented a positive result in the context of the trading conditions experienced during the year.
Cash flow
We continue to invest in our client relationships, the strength of which facilitates timely settlement of accounts and payment of retentions. Together with close monitoring of work in progress, this enables the company to maintain effective control of cash flow.
The more challenging trading environment during the latter part of 2025 resulted in lower levels of work certified at the year end. Despite this, proactive cash management ensured that the business remained financially resilient as it entered 2026.
The company remains committed to paying suppliers in accordance with agreed terms wherever possible. Credit reference agency reports indicate that our supplier payment performance continues to exceed the industry average.
During 2025, the planned process of purchasing the minority interests held by the founding directors commenced, with the initial transactions supported by profits retained from previous years. The company remains committed to the retention of sufficient funds to support future growth and provide resilience against unforeseen challenges.
People
We continue to place great value on our people and invested in training and professional qualifications at all levels during the year. We were delighted to be named AccXel Construction School’s Gold Employer Partner Winner for 2025.
Members of our management team achieved senior construction management qualifications during the year, while employees at other levels continued to complete groundworks apprenticeships and construction and civil engineering NVQs. Two new apprentices also joined the company.
We continued to develop collaborative relationships with local colleges, universities and prisons to raise awareness of careers within construction and groundworks. These relationships have also supported recruitment into the business.
Social value and environmental responsibility
Social value remains an important part of our business strategy. Our vision is to be a business that “builds for good”, supported by our core value of responsibility. During the year, we received a Community Engagement Award from one of our key clients in recognition of our contribution in this area.
The company operates in the groundworks, enabling works and civil engineering sectors.
Turnover increased by 13% to £14.8m, exceeding both plan and forecast. However, the gross profit margin of 14.5% was below expectations.
Trading was strong during the early part of 2025, when much of the increase in turnover was generated. Activity moderated from the summer onwards, reflecting a slowdown in the construction industry and wider economic uncertainty.
Two contracts delivered single-digit gross margins during the year and had a significant adverse effect on overall profitability. Both contracts concluded in early 2026, with the final account position showing a modest improvement against the margins reported during 2025. Strong delivery across other projects within the company’s diversified portfolio helped to mitigate this impact.
Profit after tax for the year in the company was £96,117. Although below plan, this was an improvement on 2024 and represented a positive result in the context of the trading conditions experienced during the year.
Cash flow
We continue to invest in our client relationships, the strength of which facilitates timely settlement of accounts and payment of retentions. Together with close monitoring of work in progress, this enables the company to maintain effective control of cash flow.
The more challenging trading environment during the latter part of 2025 resulted in lower levels of work certified at the year end. Despite this, proactive cash management ensured that the business remained financially resilient as it entered 2026.
The company remains committed to paying suppliers in accordance with agreed terms wherever possible. Credit reference agency reports indicate that our supplier payment performance continues to exceed the industry average.
During 2025, the planned process of purchasing the minority interests held by the founding directors commenced, with the initial transactions supported by profits retained from previous years. The company remains committed to the retention of sufficient funds to support future growth and provide resilience against unforeseen challenges.
People
We continue to place great value on our people and invested in training and professional qualifications at all levels during the year. We were delighted to be named AccXel Construction School’s Gold Employer Partner Winner for 2025.
Members of our management team achieved senior construction management qualifications during the year, while employees at other levels continued to complete groundworks apprenticeships and construction and civil engineering NVQs. Two new apprentices also joined the company.
We continued to develop collaborative relationships with local colleges, universities and prisons to raise awareness of careers within construction and groundworks. These relationships have also supported recruitment into the business.
Social value and environmental responsibility
Social value remains an important part of our business strategy. Our vision is to be a business that “builds for good”, supported by our core value of responsibility. During the year, we received a Community Engagement Award from one of our key clients in recognition of our contribution in this area.
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SOLUM (SW) LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Throughout 2025, we continued to monitor our carbon emissions using industry-specific tools and began engaging with specialist organisations to support the measurement and reduction of our environmental impact. The implementation of a paperless accounting system also significantly reduced our use of paper and printing materials.
We have been privileged to support local community projects, charities and sporting initiatives throughout the year, including providing materials for an award-winning play area at a local primary school, participating in fundraising and sporting events, supporting local junior sports teams and maintaining our support for local cancer research.
A key risk remains the potential loss of income arising from the failure of a main contractor, as experienced in 2024. Insurance protection against client insolvency remains limited within the sector.
The company mitigates this risk by maintaining a diversified client portfolio, working predominantly with established top-tier contractors and carrying out ongoing due diligence and market monitoring. During 2025, we further diversified our portfolio by commencing projects with two new main contractors.
Economic uncertainty, delayed project start dates, a competitive labour market and fluctuations in material and fuel costs continue to present risks to the business. The company uses current market information and industry relationships to monitor trends, consider potential outcomes and respond in a measured and timely manner.
The company mitigates this risk by maintaining a diversified client portfolio, working predominantly with established top-tier contractors and carrying out ongoing due diligence and market monitoring. During 2025, we further diversified our portfolio by commencing projects with two new main contractors.
Economic uncertainty, delayed project start dates, a competitive labour market and fluctuations in material and fuel costs continue to present risks to the business. The company uses current market information and industry relationships to monitor trends, consider potential outcomes and respond in a measured and timely manner.
The company’s principal financial key performance indicators are turnover, gross profit margin, cash and net assets, details of which are included in the financial statements.
The company manages its tender pipeline and selection of new projects having regard to available capacity, operational resources, project risk and targeted financial returns.
The company manages its tender pipeline and selection of new projects having regard to available capacity, operational resources, project risk and targeted financial returns.
Turnover for the first half of 2026 remained below our original forecasts and long-term growth plan, reflecting continued uncertainty within the construction sector. However, tendering activity remained strong and we continue to focus on securing sustainable and profitable work.
Management information for the first half of 2026 showed a return to planned, or improved, gross profit margins. Strategic reductions in overhead expenditure also contributed to a significant improvement in net profitability.
The company’s cash position remained strong. The completion of several contracts, together with the settlement of final accounts and receipt of retention payments, strengthened liquidity and positioned the business to respond quickly to new opportunities and any improvement in market activity.
The company remains disciplined in its approach to new opportunities, with particular focus on contract conditions, payment terms, project duration and delivery risk.
Management information for the first half of 2026 showed a return to planned, or improved, gross profit margins. Strategic reductions in overhead expenditure also contributed to a significant improvement in net profitability.
The company’s cash position remained strong. The completion of several contracts, together with the settlement of final accounts and receipt of retention payments, strengthened liquidity and positioned the business to respond quickly to new opportunities and any improvement in market activity.
The company remains disciplined in its approach to new opportunities, with particular focus on contract conditions, payment terms, project duration and delivery risk.
This report was approved by the board and signed on its behalf.
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SOLUM (SW) LTD
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.
The profit for the year, after taxation, amounted to £96,117 (2024: £79,932).
During the year dividends of £167,750 (2024: £650,000) were paid.
The directors who served during the year were:
The auditors, Bishop Fleming Audit Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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SOLUM (SW) LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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SOLUM (SW) LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SOLUM (SW) LTD
We have audited the financial statements of Solum (SW) Ltd (the 'company') for the year ended 31 December 2025, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position 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 auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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SOLUM (SW) LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SOLUM (SW) LTD (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
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SOLUM (SW) LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SOLUM (SW) LTD (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
∙We have considered the nature of the industry and sector, control environment and business performance.
∙We have considered the results of our enquiries of management and the board about their own identification and assessment of the risks of irregularities.
∙For any matters identified we have obtained and reviewed the Company’s documentation of their policies and procedures relating to:
∙Identifying, evaluating and complying with laws and regulations, including Duty, and whether they were aware of any instances of non-compliance;
∙Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and
∙The internal controls established to mitigate risks of fraud or non-compliance with laws and regulations.
∙We have considered the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud, and incorrect recognition of revenue at the year-end was identified as the greatest potential area for fraud.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and tax legislation.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company’s ability to operate or to avoid a material penalty. These included compliance with Health and Safety regulations, Building regulations, data protection legislation and employment legislation.
Our procedures to respond to the fraud risks identified, including revenue recognition as a key audit matter, included the following:
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and tax legislation.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company’s ability to operate or to avoid a material penalty. These included compliance with Health and Safety regulations, Building regulations, data protection legislation and employment legislation.
Our procedures to respond to the fraud risks identified, including revenue recognition as a key audit matter, included the following:
∙Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements.
∙Performing various substantive tests of detail related to the recognition of revenue.
∙Enquiring of management and those charged with governance concerning actual and potential litigation and claims.
∙Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
∙In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; and assessing whether the judgements made in making accounting
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SOLUM (SW) LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SOLUM (SW) LTD (CONTINUED)
estimates are indicative of a potential bias.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team
members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout
the audit.
members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout
the audit.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditors
10 Temple Back
BS1 6FL
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SOLUM (SW) LTD
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2025
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SOLUM (SW) LTD
REGISTERED NUMBER:05668267
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 11 to 22 form part of these financial statements.
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SOLUM (SW) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Solum (SW) Ltd is a private company, limited by shares, incorporated in England and Wales. The registered office is Upper Buckover Farm, Wotton-Under-Edge, South Gloucestershire, GL12 8DZ and the registered number is 05668267.
2.ACCOUNTING POLICIES
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies (see note 3).
FRS 102 allows a qualifying entity certain disclosure exemptions, subject to certain conditions, which have been complied with. The company has taken advantage of the following exemption from preparing a statement of cash flows on the basis that it is a qualifying entity and its ultimate parent company, Solum SW Holdings Limited, includes the company's cash flows in its Consolidated Statement of Cash Flows. The consolidated financial statements of Solum SW Holdings Limited as at 31 December 2025 may be obtained from Companies House.
The following principal accounting policies have been applied:
The directors have assessed the company’s ability to continue as a going concern for a period of at least 12 months from the date on which these financial statements are approved.
In making this assessment, the directors have considered the company’s current financial position, recent trading performance, cash flow forecasts and expected working capital requirements. Although turnover in the first half of 2026 remained below the company’s original forecasts, gross profit margins improved and reductions in overhead expenditure contributed to improved net profitability. The company’s cash position remained strong, supported by the completion of contracts, settlement of final accounts and receipt of retention payments.
Having considered the available information, including reasonably possible changes in trading performance, the directors have a reasonable expectation that the company has adequate resources to meet its liabilities as they fall due and to continue in operational existence for the foreseeable future. Accordingly, the financial statements have been prepared on the going concern basis.
In making this assessment, the directors have considered the company’s current financial position, recent trading performance, cash flow forecasts and expected working capital requirements. Although turnover in the first half of 2026 remained below the company’s original forecasts, gross profit margins improved and reductions in overhead expenditure contributed to improved net profitability. The company’s cash position remained strong, supported by the completion of contracts, settlement of final accounts and receipt of retention payments.
Having considered the available information, including reasonably possible changes in trading performance, the directors have a reasonable expectation that the company has adequate resources to meet its liabilities as they fall due and to continue in operational existence for the foreseeable future. Accordingly, the financial statements have been prepared on the going concern basis.
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SOLUM (SW) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.ACCOUNTING POLICIES (CONTINUED)
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SOLUM (SW) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.ACCOUNTING POLICIES (CONTINUED)
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives.
Depreciation is provided on the following basis:
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SOLUM (SW) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.ACCOUNTING POLICIES (CONTINUED)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's Statement of Financial Position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Impairment of financial assets
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SOLUM (SW) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.ACCOUNTING POLICIES (CONTINUED)
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SOLUM (SW) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The estimates and underlying assumptions are reviewed on an ongoing basis. Any revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision only affects that period. If the revision affects both current and future periods, then it is recognised in both the current and future period.
The key estimates in the accounts relate to the company’s revenue recognition and long-term service contracts policies are set out in note 2.3. These policies are central to the way in which the company values the work it has carried out at each reporting date and the estimation of the percentage completion of the contract. These policies require forecasts to be made of the outcome of long-term service contracts and require assessments and judgements to be made on the recovery of precontract costs, variations in work scopes, claim recoveries, expected contract costs to complete and the progress on contract programmes. The company has appropriate control procedures in place to ensure estimates are calculated on a consistent basis.
Analysis of turnover by country of destination:
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SOLUM (SW) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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SOLUM (SW) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
There were no factors that may affect future tax charges.
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SOLUM (SW) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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SOLUM (SW) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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SOLUM (SW) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Capital redemption reserve
Profit and loss account
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. At the year end, £21,369 (2024: £17,831) remained payable to the fund.
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SOLUM (SW) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The immediate and ultimate parent company is Solum SW Holdings Limited which prepares consolidated financial statements. The ultimate controlling party is T F Reeves.
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