REGISTERED NUMBER: SC122689 (Scotland)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2025

for

MacAulay Askernish Ltd.

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Income and Retained Earnings

9

Balance Sheet

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

14

DIRECTORS:

Mr Alistair MacAulay

Mr Stephen John MacAulay

Mr Donald John MacAulay

SECRETARY:

Morag Ann MacAulay

REGISTERED OFFICE:

Hillside Garage

Lochboisdale

South Uist

HS8 5TH

REGISTERED NUMBER:

SC122689 (Scotland)

AUDITORS:

Stevenson & Kyles

Chartered Accountants

Statutory Auditor

25 Sandyford Place

Glasgow

G3 7NG

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

REVIEW OF BUSINESS

The directors are satisfied with the performance of the company during the year and believe it remains well positioned to deliver sustainable growth. The company has maintained strong relationships with key clients and delivered projects aligned with our commitment to quality, safety, and social value. Looking ahead, MacAulay Askernish Ltd is actively pursuing expansion opportunities, including participation in new frameworks and the development of strategic partnerships. These initiatives are expected to broaden our service offering, strengthen our market position, and create further opportunities for growth in the coming years.

PRINCIPAL RISKS AND UNCERTAINTIES

As the company continues to grow, senior management and leadership roles will increasingly require skills and capabilities that extend beyond the family group of shareholders and directors. The potential need to appoint external senior managers introduces an element of succession and leadership transition risk, particularly if key roles are not filled at the appropriate time with suitably experienced individuals.

The directors consider these matters to be manageable risks and are actively reviewing succession planning, leadership development, and appropriate shareholder agreements to ensure continuity of governance, protect the company’s long-term stability, and safeguard the interests of employees, clients, and stakeholders.

CORPORATE SOCIAL RESPONSIBILITY AND SOCIAL VALUE

During the year, MacAulay Askernish Ltd continued its commitment to supporting local communities and charitable organisations. The company has donated over £100,000 to a range of causes, including education, employability, health, and community development across the Western Isles and beyond. These contributions reflect our ongoing pledge to deliver social value and invest in the wellbeing of the areas in which we operate. Our charitable giving has enabled local charities and community groups to deliver vital services, improve facilities, and support vulnerable individuals. In 2025 alone, our donations have helped fund adult learning programmes, sports initiatives, and health and wellbeing projects, demonstrating our commitment to making a meaningful difference. We work closely with recipients to ensure our support delivers lasting benefits, strengthens local capacity, and fosters positive relationships with stakeholders.

WHISTLEBLOWING AND GOVERNANCE

The company maintains a whistleblowing policy and an open culture for reporting concerns. We are committed to high standards of corporate governance and ethical conduct.

ON BEHALF OF THE BOARD:

Mr Alistair MacAulay - Director

25 September 2026

The directors present their report with the financial statements of the company for the year ended 31 December 2025.

PRINCIPAL ACTIVITIES

The principal activities of the company in the year under review were those of construction and civil engineering, and quarry operators.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2025.

DIRECTORS

The directors during the year under review were:

Mr Alistair MacAulay

Mr Stephen John MacAulay

Mr Donald John MacAulay

The beneficial interests of the directors holding office on 31 December 2025 in the issued share capital of the company were as follows:

31.12.25

1.1.25

Ordinary £1 shares

Mr Alistair MacAulay

286

286

Mr Stephen John MacAulay

125

125

Mr Donald John MacAulay

125

125

OWNERSHIP AND SHAREHOLDING

The company’s issued share capital is privately held. The directors note that Stephen John MacAulay and Donald John MacAulay have expressed an interest in acquiring a majority shareholding should such shares become available for purchase. This statement is made to provide transparency regarding potential future changes in ownership.

ENVIRONMENTAL AND SUSTAINABILITY

The company continues to minimise environmental impact through responsible sourcing, waste reduction, and compliance with sustainable procurement principles. We aim to reduce carbon emissions across our operations and encourage suppliers to adopt similar standards. During the year, the company invested £151,000 in a grid electricity supply for Stiaraval Quarry, which currently operates on generators. This investment will significantly reduce reliance on fossil fuels, lower emissions, and improve the environmental footprint of our quarry operations.

PROMPT PAYMENT CODE

The company adheres to the UK Prompt Payment Code, ensuring suppliers are paid fairly and on time. This commitment supports strong supply chain relationships and ethical business practices.

ENGAGEMENT WITH EMPLOYEES

We value our workforce and invest in training and development to maintain high standards of competence and safety. The company promotes equality, diversity, and fair treatment for all employees. The company provides private health care to all employees as part of our commitment to wellbeing, equality, and ensuring our workforce has access to comprehensive support. This benefit complements our focus on creating a safe, inclusive, and supportive working environment.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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 and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Stevenson & Kyles, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr Alistair MacAulay - Director

25 September 2026

Opinion

We have audited the financial statements of MacAulay Askernish Ltd. (the 'company') for the year ended 31 December 2025 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the 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 company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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.

Auditor's approach to assessing the risks of material misstatement due to irregularities

We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity. Those that have a direct impact include: FRS102, Companies Act 2006 and UK tax laws. Those that have an indirect impact include: employment matters, data protection, and health and safety regulations. We assessed the risk of material misstatement in respect of fraud and made enquiries of management as to the existence of, or any evidence of, actual or suspected instances of fraud.

Audit procedures designed to respond to the risk of non-compliance with laws and regulations

Based on the results of our risk assessment we designed audit procedures to identify non-compliance with such laws and regulations identified above. We made enquiries of management and those charged with governance. We corroborated our enquiries through a review of relevant correspondence and a review of professional fees.

Audit procedures designed to respond to the risk of fraud

We considered the risk of fraud through management override and in response we incorporated testing of manual journal entries into our audit approach. In order to address the risk of fraud in relation to revenue recognition, we undertook substantive testing of sales.

Considerations around likelihood of detection

There are inherent difficulties in the audit process described above to detect the existence of irregularities. We have mitigated these limitations by reviewing and testing the company's internal controls and by the nature, timing and extent of the audit procedures involved, by introducing an element of unpredictability in our sampling and testing.

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

Use of our report

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

Mr Mark Dunn CA (Senior Statutory Auditor)

for and on behalf of Stevenson & Kyles

Chartered Accountants

Statutory Auditor

25 Sandyford Place

Glasgow

G3 7NG

25 September 2026

TURNOVER

13,583,202

15,503,403

Cost of sales

6,963,521

9,521,143

GROSS PROFIT

6,619,681

5,982,260

Administrative expenses

5,240,628

3,703,958

OPERATING PROFIT

4

1,379,053

2,278,302

Amounts written off investments

5

12,000

-

1,367,053

2,278,302

Interest payable and similar expenses

6

12,709

17,559

PROFIT BEFORE TAXATION

1,354,344

2,260,743

Tax on profit

7

356,584

333,319

PROFIT FOR THE FINANCIAL YEAR

997,760

1,927,424

Retained earnings at beginning of year

4,842,336

2,918,912

Dividends

8

-

(4,000

)

RETAINED EARNINGS AT END OF YEAR

5,840,096

4,842,336

FIXED ASSETS

Tangible assets

9

3,350,467

1,929,628

Investments

10

-

12,000

3,350,467

1,941,628

CURRENT ASSETS

Stock

11

93,712

-

Debtors

12

1,363,048

1,334,935

Cash at bank and in hand

2,257,790

3,190,054

3,714,550

4,524,989

CREDITORS

Amounts falling due within one year

13

439,347

1,195,291

NET CURRENT ASSETS

3,275,203

3,329,698

TOTAL ASSETS LESS CURRENT LIABILITIES

6,625,670

5,271,326

PROVISIONS FOR LIABILITIES

16

784,574

427,990

NET ASSETS

5,841,096

4,843,336

CAPITAL AND RESERVES

Called up share capital

17

1,000

1,000

Retained earnings

18

5,840,096

4,842,336

SHAREHOLDERS' FUNDS

5,841,096

4,843,336

The financial statements were approved by the Board of Directors and authorised for issue on 25 September 2026 and were signed on its behalf by:

Mr Alistair MacAulay - Director

Cash flows from operating activities

Cash generated from operations

1

1,546,940

3,654,456

Interest element of hire purchase payments paid

(12,709

)

(17,559

)

Tax paid

(237,646

)

-

Net cash from operating activities

1,296,585

3,636,897

Cash flows from investing activities

Purchase of tangible fixed assets

(2,389,284

)

(1,134,328

)

Purchase of fixed asset investments

-

(12,000

)

Sale of tangible fixed assets

171,023

155,130

Write off of investment

12,000

-

Net cash from investing activities

(2,206,261

)

(991,198

)

Cash flows from financing activities

Capital repayments in year

(22,588

)

(56,687

)

Equity dividends paid

-

(4,000

)

Net cash from financing activities

(22,588

)

(60,687

)

(Decrease)/increase in cash and cash equivalents

(932,264

)

2,585,012

Cash and cash equivalents at beginning of year

2

3,190,054

605,042

Cash and cash equivalents at end of year

2

2,257,790

3,190,054

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit before taxation

1,354,344

2,260,743

Depreciation charges

842,581

587,267

Profit on disposal of fixed assets

(45,159

)

(145,964

)

Finance costs

12,709

17,559

2,164,475

2,719,605

(Increase)/decrease in stock

(93,712

)

14,000

(Increase)/decrease in trade and other debtors

(28,113

)

513,227

(Decrease)/increase in trade and other creditors

(495,710

)

407,624

Cash generated from operations

1,546,940

3,654,456

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

2,257,790

3,190,054

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

3,190,054

605,042

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank and in hand

3,190,054

(932,264

)

2,257,790

3,190,054

(932,264

)

2,257,790

Debt

Finance leases

(22,588

)

22,588

-

(22,588

)

22,588

-

Total

3,167,466

(909,676

)

2,257,790

1.	STATUTORY INFORMATION

MacAulay Askernish Ltd. is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Heritable property

-

5% on cost

Plant and machinery

-

15% on cost

Motor vehicles

-

25% on reducing balance

Stocks

Stock are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

Basic financial instruments, including debtors and creditors with no stated interest rate and receivable or payable within one year, are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in administrative expenses.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Government grants

Grants receivable in respect of capital expenditure are being written off evenly over the useful life of the fixed assets acquired.

Grant income

Where applicable, grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be received and that the company will comply with all attached conditions. Where the grant income relates to a particular expense item, the grant income is recognised in the profit and loss account over the same period as the expense it is intended to compensate.

3.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

2,914,890

2,180,746

Other pension costs

211,881

116,095

3,126,771

2,296,841

The average number of employees during the year was as follows:

2025

2024

Management, admin and direct

71

57

Key management personnel are restricted to directors.

2025

2024

£

£

Directors' remuneration

169,914

166,232

Directors' pension contributions to money purchase schemes

118,000

48,000

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2025

2024

£

£

Hire of plant and machinery

3,459

2,335

Other operating leases

9,800

30,598

Depreciation - owned assets

832,581

551,267

Depreciation - assets on hire purchase contracts

10,000

36,000

Profit on disposal of fixed assets

(45,159

)

(145,964

)

5.

AMOUNTS WRITTEN OFF INVESTMENTS

2025

2024

£

£

Investment written off

12,000

-

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Hire purchase interest

2,921

7,281

Bank interest and charges

9,788

10,278

12,709

17,559

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

-

237,646

Deferred tax

356,584

95,673

Tax on profit

356,584

333,319

8.

DIVIDENDS

2025

2024

£

£

Ordinary shares of £1 each

Dividend

-

4,000

9.	TANGIBLE FIXED ASSETS

Heritable

Plant and

Motor

Computer

property

machinery

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 January 2025

287,748

3,526,414

559,005

1,238

4,374,405

Additions

-

2,242,539

146,745

-

2,389,284

Disposals

-

(363,350

)

(51,700

)

-

(415,050

)

At 31 December 2025

287,748

5,405,603

654,050

1,238

6,348,639

DEPRECIATION

At 1 January 2025

97,370

2,059,057

287,112

1,238

2,444,777

Charge for year

11,199

727,692

103,690

-

842,581

Eliminated on disposal

-

(241,368

)

(47,818

)

-

(289,186

)

At 31 December 2025

108,569

2,545,381

342,984

1,238

2,998,172

NET BOOK VALUE

At 31 December 2025

179,179

2,860,222

311,066

-

3,350,467

At 31 December 2024

190,378

1,467,357

271,893

-

1,929,628

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

machinery

£

COST

At 1 January 2025

349,908

Transfer to ownership

(349,908

)

At 31 December 2025

-

DEPRECIATION

At 1 January 2025

254,594

Charge for year

10,000

Transfer to ownership

(264,594

)

At 31 December 2025

-

NET BOOK VALUE

At 31 December 2025

-

At 31 December 2024

95,314

10.	FIXED ASSET INVESTMENTS

Unlisted

investments

£

COST

At 1 January 2025

12,000

Impairments

(12,000

)

At 31 December 2025

-

NET BOOK VALUE

At 31 December 2025

-

At 31 December 2024

12,000

11.

STOCK

2025

2024

£

£

Stock

93,712

-