The directors present the strategic report for the year ended 31 December 2025.
Principal activities
The Group is one of the UK’s market leaders in DfMA (Design for Manufacture and Assembly) and hybrid construction solutions for structures and facades in both the public and private sectors. The Group’s approach is focused on reducing uncertainty and maintaining control from concept to completion through the use of innovative construction methods, advanced digital techniques and pre-determined kits-of-parts solutions. This enables our clients to achieve optimum value, efficiency, predictability and speed of delivery.
The Group is Employee Owned with the PCE Employee Ownership Trust being the controlling party and majority shareholder of P.C.E. Group Holdings Limited.
Fair review of the business
The directors are satisfied with the business performance which was as anticipated and in line with our forecasts. The turnover reduced during the year as a result of the timing of project completions and the delay to project start dates. Profitability was also impacted by planned investment in people, systems and business infrastructure to support anticipated growth in future periods particularly 2026. Despite these factors, the results achieved were in line with management expectations and approved forecasts. Based on the current secured workload and programme assumptions the directors currently expect revenue in 2026 to be approximately £116m with an acceptable level of profitability for the year subject to project delivery.
The profit before tax for the year ended 31 December 2025 was £3,875,134 (2024 profit: £5,610,251) with profit after taxation being £3,024,252 (2024: £4,192,077).
Revenue during the year decreased from £77,860,613 (2024) to £68,999,031.
Overall shareholders’ funds increased by £3,024,252.
Some of the Group's hybrid construction solutions require research and development into new methods of construction and innovative techniques and, where appropriate, the Group claims Research and Development (R&D) tax relief.
The Group’s Key Financial Performance Indicators during the year were as follows:
2025 2024
Turnover £69.00m £77.86m
Profit before taxation £3.88m £5.61m
Shareholders’ Funds £15.32m £12.30m
The current secured order book in August 2026 is £110.16m, including confirmed orders of £50.75m for 2027 and £12.73m for 2028.
Operational review
During 2025, works were completed at the Fulton & Fifth Development constructing 876 residential units in Wembley London comprising of five high-rise towers using PCE’s hyTower® system along with the two projects at the new Brent Cross Town Development in London for both 3 Aviator Drive (Plot 14) – comprising of 286 residential units using PCE’s hyTower® system and 4 Arbour Street (Plot 1) - a new fourteen storey commercial block using the PCE HybriDfMA Frame System.
Significant projects commencing construction during 2025 included the Ministry of Justice Small Secure Houseblocks Programme at HMP Channings Wood and HMP Lancaster with both projects being substantially completed at the year end. The third project from the programme HMP Northumberland had its start date pushed back into 2026.
Notable new projects that commenced in 2025 were:
The new HMP Gartree prison next to the existing site in Leicestershire providing 1,700 category B prison places with design commencing early 2025 and construction commencing November 2025 with completion due by end of 2026.
The new HMP Glasgow prison with a capacity of 1,344 providing a much-needed replacement for the 143-year-old HMP Barlinnie with design commencing early 2025 and construction commencing December 2025 with substantial completion programmed for December 2026.
The University of Manchester Fallowfield Student Accommodation delivering 3,300 high-quality student homes across the former sites of Owens Park, Oak House and Woolton Hall also commenced design works in 2025. The scheme is being delivered by PCE Limited using its Hybrid Living structural system — an integrated, offsite solution built around an optimised 2D kit-of-parts. The systemised approach enables greater speed, certainty and control across design, manufacture and assembly, supporting efficient programme delivery while maintaining consistently high-quality standards. Construction has commenced in 2026 and is due for completion in 2028.
Preconstruction and design have commenced on future projects although site commencement dates, which are outside the Group’s control, have moved back, which has subsequently pushed projects forward into 2027 / 2028 and beyond.
Ongoing geopolitical tensions and wider economic uncertainty continue to create inflationary pressures across the construction sector. The Group continues to monitor these factors closely and currently expects trading levels in 2027 to be more consistent with those experienced during 2024 and 2025.
The Group’s focus remains in securing a high-quality order intake with chosen customers / partners and, along with recognising the importance of our supply chain, we understand our goals can only be achieved with our operational teams working in close collaboration with both customer and supply chain partner.
The Group is continuing with its long-term plan of delivering offsite innovative hybrid construction solutions and the directors believe that the quality of people employed with their positive culture and creative thinking, along with operational efficiencies gives the Group a competitive edge. The directors see employee engagement as an important priority and understand that to meet the Group’s 2030 goals and beyond, the Group needs to develop, retain, and invest in its people as well as attracting new people to be able to successfully deliver its plans.
The directors’ operational teams along with the senior leadership teams continue to work with the board directors managing the day-to-day operational function of the businesses and supporting in the development of the next generation leaders.
The Group has continued to invest in its people, training and development programmes through individual development plans and internal training along with further investment into health & safety, plant, and continuous improvement in all areas of the business.
To support the efficient delivery of projects the Group continues to significantly invest in the digitalisation of its processes with the “input data once” philosophy. The adoption of innovative technologies is helping to create an integrated project delivery platform capable of supporting current turnover levels and the Group's 2030 strategic plan.
The Group continued in its accreditation to ISO: 9001:2015 in recognition of its Quality Management System during the year and places a high emphasis on delivering projects to the required quality with its supply chain partners. The Group also continued in its accreditation of both ISO 14001 (Environmental Management System) and ISO 45001 (Occupational Health & Safety incl. SSIP).
With over 50 years in business the Group through PCE Limited has seen a major transformation; evolving from a construction only business to a comprehensive design and build organisation, developing its digital and strategic capabilities, and becoming a member of a 100% employee-owned Group. Whilst driven by a philosophy of continuous improvement, PCE Limited has progressed to becoming a leading DfMA (Design for Manufacture and Assembly) business, delivering some of the most impactful, award-winning structures across the UK.
What has been constant throughout the years of change is two things; the culture and ethic of the people behind the business, and their collective will to win. These characteristics, backed by the positive changes made by the business over the years, have allowed PCE Limited to adapt and excel. We have grown significantly in size and stature, whilst remaining true to the ethos and family culture instilled in the business by its late Founder, Vince Wetton.
We are truly grateful to each and every person, client, supplier, and partner who has helped the Group on its journey. To those who are still here, those who have gone in different directions, and to those who sadly are no longer with us the Group thanks them all.
With a bright future of innovation, talent, progression, and sustainability, we are genuinely excited about where we are heading with our 2030 plan.
The project 4 Arbour Street (Plot1) won the Best Use of Industrialised Systems & Technologies award at the inaugural Industrialised Construction Awards 2026 and is also currently shortlisted for the Best use of Hybrid Technology at the Offsite Awards 2026.
Our staff and project teams have also received multiple awards from our customers for their work and efforts particularly in safety and engagement during the year.
Following a period of sustained growth and strong performance within the Group, we are in the process of a rebranding exercise for the Group which will have a new corporate identity with P.C.E. Group Holdings Limited changing to “Interlox Group Limited”. This change reflects the maturity of our operations and the requirement for a unified structure capable of supporting our long-term ambitions. “Interlox Group” will provide overarching strategic alignment across our people, technology, construction systems, and investment activities. Moving forward the Group will comprise of three distinct operating companies, each with a clear mandate and each contributing a defined and complementary capability:
hyTower London — our local DfMA superstructure and façade contractor serving the residential sector, employing local talent, with a local office in Shoreditch, London
PCE Limited — our national DfMA superstructure and façade contractor operating across all sectors throughout the UK, employing people from across the country, with its office in Tamworth, West Midlands.
Ynomia — our global digital DfMA platform provider, delivering real time digital twin capability for planning and tracking kits of parts and associated tasks, employing people internationally and currently active in Singapore, Europe, the UK, and Australia.
Interlox Group will be structured to support a controlled and sustainable growth trajectory, with a clear plan to reach a turnover of £200m. This strategy is underpinned by disciplined governance, targeted investment, and a focus on scalable systems and capabilities.
The rebrand of Group to Interlox Group strengthens our ability to deliver consistently for our clients. The Group’s structure ensures that each operating company operates with clarity of purpose while benefiting from shared strategic direction, integrated technology, and coordinated operational support. Irrespective of project scale or sector, our clients will continue to receive the full capability and commitment of the Group.
Ynomia Limited successfully delivered its first project, HDB Tengah in Singapore with Obayashi Singapore Private Limited, across 18 buildings, deploying the Ynomia digital twin across factories, storage yards, finishing yards, and site in Singapore for Prefabricated Prefinished Volumetric Construction components. Ynomia is currently delivering the New Science Centre in Singapore with Obayashi for the JTC Corporation, Singapore’s lead government agency for industrial infrastructure. In parallel, Ynomia has been approved by JTC for the Digital Precast and Logistics Tracking Category (the first category) as part of the JTC's IDDTA (Integrated Digital Delivery Technology Alliance). Ynomia has also received JTC-issued IDDTA certification and is now listed on JTC's Certified IDD Solutions List and will be nominated for use in suitable JTC project specifications going forward. The certification is valid for 24 months.
We would like to express our appreciation for the continued confidence placed in our operating companies and the Group as a whole being built on strong client relationships, progressive partners, and a workforce committed to excellence. We look forward to continued collaboration and shared success as we deliver against our strategic plan for Interlox Group.
Section172(1) Statement
Section 172(1) of the Companies Act 2006 requires a director of a company to act in the way they consider, in good faith, would most likely promote the success of the company for the benefit of its members as a whole and in doing so had regard, amongst other matters to the:
likely consequences of any decisions in the long term
interests of the Group’s employees
need to foster the Group’s business relationships with suppliers, customers and others
impact of the Group’s operations on the community and environment
desirability of the Group maintaining a reputation for high standards of business conduct
need to act fairly between members of the Group
The board both individually and collectively, have had regard to the matters set out in section 172(1) when discharging their section 172 duties and take into account the impact of decisions on all our stakeholders and continue to ensure that the health, safety
and wellbeing of our people partners and other stakeholders remains central to everything we do.
Regular board meetings are held where the directors review the Group’s activities and make any required decisions. The Directors will receive information in a range of different formats to ensure they consider section 172 matters when decision making.
With the Group being employee owned our people are our partners and we believe in the power of the employee voice and have a philosophy of engagement, involvement and participation meaning our people help to make decisions that define the Group’s identity, drive the business, and shape the future of the Group by using the Group core behaviours - Humble, Honest, Hungry and Smart. As a people focused Group a happy and engaged workforce is key for the success and longevity of the Group and as such the Group takes pride in having a long serving workforce.
The board directors continue to stage regular business updates and the use of several other communication channels like the internal communication hub to update staff on both performance and progress along with social media, e-mail and instant messaging channels.
We are committed to invest in our employees in health and safety, skills and leadership training, providing apprenticeships, and promoting employee ownership.
Regular one to ones along with performance and development reviews are held between managers and employees throughout the year and a six monthly confidential eNPS (employee net promoter score) is used to measure employee loyalty and engagement.
The employee run steering group continues influencing the current activities of the business along with the future vision helping to make the overall Group a place in which people are proud to work.
Along with customers and supply chain partners our other major stakeholders include insurers, bankers, auditors and advisors. The Group recognises the importance of having our stakeholders’ views and actively engages with them so the Group can proactively consider their interests in the decisions it makes.
Engagement with our various stakeholders is fundamental to the long-term success and sustainability of the Group and takes stakeholder interests into account when making strategic and operational decisions. This is encouraged and is done through regular, open and collaborative dialogue where we ensure all parties are kept informed and listened to by way of regular Group updates, site visits, workshops and social media. The directors believe that this dialogue is important to promote a long-term working relationship with our stakeholders and to aid continuous improvement and communication.
The directors recognise that the Group must act responsibly towards sustainability and the environment and is committed in protecting the environment and aware that climate change is a huge challenge in both business and society and continues to implement policies and procedures to minimise the damage caused to the environment and promote energy efficiency.
The Group encourages diversity and inclusion of employee partners of all backgrounds.
Principal risks and uncertainties
The principal risks which management face are of a financial and legislative nature and are regularly reviewed by the directors.
Health, Safety and Wellbeing
The Group is involved in activities that have the potential to result in injury or loss of life to employees and third parties. These risks are managed through a strong health, safety and wellbeing culture driven by the Group’s health and safety committee, controlled processes and procedures, investment into new equipment & systems and training with emphasis on working at height, lifting management and temporary works along with the control of the significant hazards, noise, dust and HAVS. The Group invests in an EAP Employee Assistance Programme for its employee partners, which provides counselling and professional support for both personal and work-related problems.
Performance Risk
The Group’s Preconstruction, Design, Manufacture and Construction (DMC) coordination approach is enabling the Group to control risks on contracts to a much larger extent, as the scope of work is better defined at an early stage and price/programme/contracts agreed before commencing work. The Group rigorously evaluates the cost of projects at tender stage, along with the control, recording and monitoring of these costs during construction and the Group’s ability to recover these costs under the agreed payment terms of our contracts reduces the financial risk impact to its performance. The management of these risks is an integral part of the Group’s control processes and procedures, including a detailed monthly review of the status and profitability of current projects by the directors. The Group also provides a comprehensive construction service with a fully trained multi skilled workforce and maintains strong relationships at all levels of management with their customers.
Quality
The Group’s reputation is built around delivering a first-class standard of work on its projects and the quality of our work can directly impact relationships with our client partners. These risks are managed through a “right first time” approach which is driven by the board and senior leadership teams through a non-conformance and senior manager observation process as well as our project teams maintaining a close relationship with our client partners to resolve any issues at the earliest opportunity.
Price Risk
The Group’s revenues are derived from the construction market. These markets are subject to variations in patterns of demand and are largely influenced by economic growth, government spending and consumer confidence. In response to this risk, the directors keep up to date with local and wider economic conditions and can adapt the pricing strategy and the cost base of the Group accordingly. The Group provides resilience for market fluctuations by having a blend of client types along with multiple systems that cover multiple sectors along with having a broad supply chain and adopting a hybrid approach.
Credit Risk
The Group’s policy is to trade only with recognised, creditworthy third parties. It is the policy of the Group that all customers who wish to trade on credit terms are subject to credit verification procedures. In addition, amounts received from trade debtors are monitored against contractual agreements, with the objective of minimising the Group exposure to bad debts. Other risk relates to the financial standing of our supply chain in terms of their ability to carry out their contracted obligations to us.
Cashflow Risk
The Group monitors cash flow as part of its day-to-day control procedures. The board considers cash flow projections monthly and ensures that appropriate facilities are available to be drawn down upon, as necessary.
Foreign Exchange Risk
The operations of the Group are mainly in the United Kingdom and as such its exposure to foreign exchange risk is minimal.
Legislative and Regulation Risk
These relate to current legislation and regulations and any changes to them including health, safety, and environmental issues. Significant focus is given at all levels from board down within the organisation and mandatory policies and procedures have been implemented and regularly reviewed along with relevant training to control compliance and mitigate risk. No significant uncovered risks were identified up to the date of these financial statements being issued.
Cyber Security Risk
The increasing digitalisation of operations exposes the Group to cyber security and data protection risks. These risks are mitigated through investment in IT infrastructure, cyber security controls, employee awareness training and external specialist support.
People Risk
The ability to attract, retain and develop suitably skilled employees remains critical to successfully delivering the Group's strategy.
Key performance indicators
The key performance indicators, other than financial, used by the Group are – Health & Safety – Quality - People – Certainty in delivery from Design, Manufacture, to onsite Assembly.
Going Concern
The construction industry continues to experience economic uncertainty, inflationary pressures and ongoing supply chain challenges. The Group looks to ensure that it collaborates closely with both client and supply chain partners to secure and place orders as soon as possible to ensure production slots and material prices are secured at the earliest opportunity to give greater certainty for the Group and its partners.
The Group has carried out a review of its financial forecasts, which are underpinned by government projects taking place in 2026 and beyond along with the private secured projects, and the directors believe that the Group has adequate financial resources even in the event of a severe downturn in activity to enable it to continue in operation for the foreseeable future. Hence, they consider that the going concern basis of accounting continues to be appropriate.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2025.
The results for the year are set out on page 17.
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 auditor, Burgis & Bullock, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
This SECR report relates to PCE Limited, which meets the qualifying criteria under the Companies (Directors' Report) and LLP (Energy and Carbon Report) Regulations 2018.
The scope of energy use included within this report comprises gas, electricity and transport fuels for which the Company is responsible.
The reported carbon emissions have been calculated following the guidance in the UK Government's Environmental Reporting Guidelines, 2019, and the methodology outlined in The GHG Protocol Corporate Accounting and Reporting Standard (revised edition). Carbon emission factors have been obtained from the UK Government's GHG Conversion Factors for Company Reporting 2025.
The total consumption (kWh) and emissions (tCO2e) for the year ended 31 December 2025 are:
Information was first prepared in 2024, being the first year in which the Company met the qualifying criteria for SECR reporting.
The Company is committed to controlling its environmental impacts and recognises that broader climate change affects both the business and society. The Company actively undertakes measures to reduce carbon emissions, energy consumption and waste. Examples during the reporting period included:
Continued to expand the use of LED lighting within our head office extension.
Optimised on-site equipment through the use of HVO (Hydrotreated Vegetable Oil) as a lower-carbon alternative to mineral diesel, where practical.
Deployed electric or battery-powered plant and equipment where appropriate.
Prioritised the use of local operatives on projects to reduce travel distances.
Held remote meetings wherever feasible to minimise travel requirements.
Commenced the phased implementation of a salary sacrifice electric vehicle scheme for PAYE employees of PCE.
The Company continually reviews its operations at both office and site locations, assessing and reforming its processes to reduce emissions and waste comprehensively. Historically, this has been achieved through the use of efficient plant and equipment and by incorporating sustainability considerations during the design stage of projects. The Company's specialist focus within the built environment means that its operations are often project-based and geographically dispersed. Consequently, its methodologies must remain adaptable to construction demand patterns and the requirements of supply chain partners.
The increase in the 2025 carbon intensity metric was primarily attributable to:
More geographically dispersed projects during the reporting period.
Increased employee numbers compared with 2024.
The expansion of the head office footprint through the lease of an adjacent building, which increased electricity consumption during the latter part of 2025.
A reduction in Company turnover, which adversely affected the intensity ratio.
In response to the increase in the Company's carbon intensity metric, the Company remains committed to enhancing initiatives aimed at reducing carbon emissions, energy consumption and waste, while continuing to evaluate and implement new measures that are expected to improve environmental performance.
The group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.
We have audited the financial statements of P.C.E. Group Holdings 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, the company 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).
Basis for 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
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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Based on our understanding of the group and industry we identified that the principal risk of non-compliance with laws and regulations related to breaches of Health & Safety Law, Environmental and Quality regulations in relation to the company’s activities as well as Companies Act 2006 , UK Tax Legislation, UK Employment Law. We also evaluated management incentive and opportunities for fraudulent manipulations of the financial statements.
Audit procedures performed included:
Reviewing returns made to Companies House and HMRC;
Discussions with management, including consideration of known or suspected incidences of non-compliance with laws and regulation and fraud;
Identifying and assessing the design effectiveness of controls in management have in place to prevent and detect fraud;
Reviewing minutes of meetings of those charged with governance;
Challenging assumptions and judgments made by management in their significant accounting estimates and assessing if these indicate evidence of management bias;
Reviewing the accounting records for large and unusual journal entries and testing any identified and in particular the rationale for any transactions outside the company’s normal course of business;
Reviewing the accounting records for large and unusual bank payments and testing any identified and in particular the rationale for any transactions outside the company’s normal course of business;
Reviewing the accounting records for large and unusual transactions and testing any identified and in particular the rationale for any transactions outside the company’s normal course of business;
Testing a sample of debit entries in the profit and loss account to check they are bona-fide costs of the business;
Testing a sample of bank payments to source documentation.
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 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.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £0 (2024 - £999,640 profit).
P.C.E. Group Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 5-6 Mariner, Lichfield Road Industrial Estate, Tamworth, Staffordshire, B79 7UL.
The group consists of P.C.E. Group Holdings Limited and all of its subsidiaries.
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. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
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.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities 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.
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. No impairment losses have been recognised in these financial statements.
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 and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost. Financial assets classified as receivable within one year are not amortised.
Financial assets classified as due in more than one year are amortised to the extent that there is a material impact on the financial statements.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date. No Impairment losses have been recognised in these financial statements.
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, bank loans and loans from fellow group companies, 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.
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.
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.
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 contract costs.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
Share Incentive Plan and Employee Benefit Trust
The company is deemed to have control of the assets, liabilities, income and costs of it's Share Incentive Plan (SIP) and it's Employee Benefit Trust (EBT). The SIP and EBT have therefore been included in the financial statements of the company following the principles of FRS 102.
Payments and receipts by the SIP and EBT on the purchase and sale of the company's own shares are reported directly in the reconciliation of movement in shareholders funds.
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 main areas where judgement is required is the carrying value of contracts and possible bad debts.
Construction contracts
Recognition of turnover and profit on contracts requires the directors to make judgements, estimates and assumptions on the current progress and anticipated final outcome of individual contracts. Directors carry out detailed monthly reviews with management on each individual contract to exercise judgment on the current progress, the costs to complete, risks and opportunities, achieving the planned programme and recovery of claims and variations.
Recoverability of contract debtors
The directors make an assessment on the recovery of all debtors and amounts recoverable on contracts which are reviewed on a regular basis with management and provisions made where appropriate. When making assessment the directors consider the age and nature of the debt, recent correspondence along with recent trading and historical collection experience.
An analysis of the group's turnover is as follows:
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 6 (2024 - 6).
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Details of the company's subsidiaries at 31 December 2025 are as follows:
Finance lease payments represent amounts payable by the company for certain items of plant, machinery and motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is predominantly 3 years and significant items are 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
Obligations under finance leases are secured on the relevant assets.
Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
The deferred tax liability set out above is expected to reverse in line with the depreciation policies as it relates to accelerated capital allowances.
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.
At the year end there were outstanding contributions of £82,995 (2024 - £71,528).
At the year end the group held 5,544 of it's own shares via the P.C.E. Group Holdings Approved Share Incentive Plan.
Construction Contracts
Due to the nature of the groups activities it could be exposed to potential future claims in respect of work performed to date. The Directors consider that any such claims would normally be covered by insurance and/or counter-claims against third parties and, consequently they do not anticipate that any material liabilities are likely to arise which would impact the group's ability to continue to trade. There are no such claims ongoing at the balance sheet date.
Operating lease payments represent rentals payable by the company for its property, office equipment
and motor vehicles. The property lease has a minimum fixed term of 5 years. The office equipment and
motor vehicle leases are fixed between 3 and 5 years.
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:
During the year the group entered into the following transactions with related parties:
The following amounts were outstanding at the reporting end date:
The ultimate controlling party is the PCE Employee Ownership Trust.
On the 26th June 2020 the company and its former shareholders established an Employee Ownership Trust, know as "The PCE Employee Ownership Trust" and constituted as an Employee Benefit Scheme under section 1166 of the Companies Act 2006. The company and its former shareholders had also previously established 2 other trusts known as "SIP" & "EBT" The purpose of both of these trusts was to hold shares in PCE Group Holdings Ltd for the long term preservation of the business for the benefit of its employees.
The transfer of £nil (2024: £955,416) represents a gift made from PCE Group Holdings Ltd to the PCE Employee Ownership Trust.