Geo Houlton & Sons Limited - Limited company accounts 25.1

REGISTERED NUMBER: 01632717 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 29th April 2026

for

Geo Houlton & Sons Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Income Statement

11

Other Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Cash Flow Statement

15

Notes to the Cash Flow Statement

16

Notes to the Financial Statements

18

DIRECTORS:

J I Craft

P S Dickerson

P R Gibson

R G Houlton

M B Johnson

A M Kingston

K W Knights

N B Travis

D R Burdick

SECRETARY:

N B Travis

REGISTERED OFFICE:

Houlton

Hyperion Street

Hull

East Yorkshire

HU9 1BD

REGISTERED NUMBER:

01632717 (England and Wales)

AUDITORS:

Sadofskys

Statutory Auditors

Princes House

Wright Street

Hull

East Yorkshire

HU2 8HX

The directors present their strategic report for the year ended 29th April 2026.

REVIEW OF BUSINESS

The business is principally engaged in the provision of high quality, award-winning construction, building maintenance, fire protection and property development services within the Yorkshire and Lincolnshire areas. The group continues to focus on partnering established clients through negotiated construction projects, as well as opportunities afforded by large public sector frameworks to which it is appointed. The company also attracts a significant volume of tender enquiries attributable to recent performance and recommendation.

The broad mix of clients and projects reflects the company's ability to deliver 'best in class' results across a wide range of sectors. The company continues to substantially invest in training, systems and procedures, and clients recognise that our project teams provide an excellent level of service, contributing directly to the success of these investments.

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and the execution of the company's strategy are subject to a number of risks. The key business risks affecting the company are considered to be the level of overall demand in local construction sector and the competition it faces from regional and local builders. These factors determine the demand for the services that the group provides in what is a highly cost sensitive market. Balancing workload with price effectively is, in consequence, critical to the future prosperity of the business.

DEVELOPMENT AND PERFORMANCE DURING THE PERIOD

The company recorded profit before tax of £302,189 (2025: £332,144) based upon an annual turnover of £28,121,824 (2025: £26,646,344).

The markets in which the business operates continue to be challenging. As previously mentioned, ensuring the business has sufficient 'sustainably priced' work is a key to the group's future success. The inflationary impact that the Iran War and the 'blockading' of the Straits of Hormuz has had on input prices, as well as the effect of increased National Insurance contributions implemented in Apr 2025, have made achieving this objective more difficult. These factors also affect our clients, damaging sentiment and their appetite for real estate investment, thereby reducing demand for our services.

Against this backdrop, however, the company has had another successful year. The efficient and effective selection, tendering and delivery of work has enabled the business to increase volumes by over 5% whilst maintaining gross margins at levels comparable to last year. In consequence, gross profits have also increased by over 5%.

In terms of the cost profile of the business, costs have increased during the year, however, these increases are often non-discretionary. Increasingly, globalisation and geopolitical events both directly and indirectly effect the business's cost base. As alluded to above, global energy prices have, due to wars in Ukraine and Iran been elevated for some time, directly impacting the business material and energy costs. Furthermore, increases in National Insurance are, it could be argued, the result of increased Government borrowing costs arising from the current geopolitical situation representing further evidence how global events can bear upon business performance. Whilst it is some consolation that we are not alone in our exposure to these challenges, it reinforces the importance of control over the costs that are discretionary requiring the company to adapt as the commercial environment evolves.

As a result, of these additional costs, profit before tax contracted marginally by approximately 9%.

Notwithstanding the minor fall in profitability, the year represents further progress in the journey to build a more stable, more profitable business and the directors believe that with the work secured and the support of our highly capable workforce, loyal customer base and supply chain, the business can look forward to a bright, prosperous future.

GOING CONCERN

The company's business activities, together with the factors likely to affect its future development, its financial position, financial risk management objectives, and its exposure to liquidity, price and credit risk are described in the Strategic report and Directors' report.

Notwithstanding challenging trading conditions, in reflecting on recent management accounts, together with corresponding cashflow and profit forecasts, the board has concluded that adherence to the going concern basis in preparing the Annual Report and financial statements continues to be appropriate. In performing this assessment, the Directors have reviewed the company's cash flow forecasts for the next 12 months from the date of the approval of the financial statements, and they have a reasonable expectation that the company has sufficient resources to continue in operational existence for the foreseeable future. The financial position will continue to be monitored very closely by Directors.

The directors therefore expect that, the going concern assumption will continue to apply for the foreseeable future.

Regarding the company's legacy defined benefit pension scheme, the previous actuarial triannual valuation of the Pension Scheme of 30 April 2023, reported a very substantial surplus and valuation updates since this date have suggested that this surplus remains at comparable levels. It is therefore, expected that costs associated with the support and operation of the scheme will be much lower in future than previously.

FINANCIAL RISK MANAGEMENT

The company's operations expose it to a variety of financial risks that include price risk, credit risk, liquidity risk and interest rate risk. The company has in place a risk awareness program that seeks to understand the adverse effects on the financial performance of the company by monitoring levels of debt finance and the related finance costs.

Given the size of the company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the company's finance department.

Price risk

The company is not exposed to any significant price risk because before projects are undertaken price tenders from suppliers and sub-contractors are obtained. Sub-contractors are responsible for the materials used in their contracts with the company.

Credit risk

The company has implemented policies that require appropriate credit checks on potential customers and sub-contractors before contracts are entered into. A significant portion of the company's activities are with Governmental organisations and as such credit risks are minimised.

Liquidity risk

Debt is project based and is supported by charged assets.

Interest rate cash flow risk

The company considers the cash flow risk on a monthly basis and the costs associated thereto are not significant to the business.

FINANCIAL KEY PERFORMANCE INDICATORS

The directors of the company and the group manage the group's operations on a divisional basis. For this reason, the company's directors believe that analysis using key performance indicators for the company is not necessary or appropriate for an understanding of the development, performance or position of the business of the company. The shareholders have a good understanding of the progress and movement of the business.

The company constantly measures its performance through detailed periodic reviews of each ongoing contract, and by monthly management accounts and meetings.

ON BEHALF OF THE BOARD:

N B Travis - Director

25th September 2026

The directors present their report with the financial statements of the company for the year ended 29th April 2026.

PRINCIPAL ACTIVITY

The principal activity of the company continued to be that of a building contractor.

DIVIDENDS

An interim dividend of 23.44p per share was paid on 3rd November 2025. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 29th April 2026 will be £ 117,204 .

DIRECTORS

The directors shown below have held office during the whole of the period from 30th April 2025 to the date of this report.

J I Craft

P S Dickerson

P R Gibson

R G Houlton

M B Johnson

A M Kingston

K W Knights

N B Travis

Other changes in directors holding office are as follows:

D R Burdick was appointed as a director after 29th April 2026 but prior to the date of this report.

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.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website.

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, Sadofskys, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

N B Travis - Director

25th September 2026

Opinion

We have audited the financial statements of Geo Houlton & Sons Limited (the 'company') for the year ended 29th April 2026 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, 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 29th April 2026 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, 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the construction industry.

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC, relevant regulators and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Alan Brocklehurst (Senior Statutory Auditor)

for and on behalf of Sadofskys

Statutory Auditors

Princes House

Wright Street

Hull

East Yorkshire

HU2 8HX

25th September 2026

TURNOVER

4

28,121,824

26,646,344

Cost of sales

24,082,757

22,820,432

GROSS PROFIT

4,039,067

3,825,912

Administrative expenses

3,870,465

3,614,772

OPERATING PROFIT

6

168,602

211,140

Interest receivable and similar income

7

36,649

53,581

Other finance income

20

110,000

93,000

146,649

146,581

315,251

357,721

Interest payable and similar expenses

8

13,062

25,577

PROFIT BEFORE TAXATION

302,189

332,144

Tax on profit

9

(68,355

)

(23,398

)

PROFIT FOR THE FINANCIAL YEAR

370,544

355,542

PROFIT FOR THE YEAR

370,544

355,542

OTHER COMPREHENSIVE INCOME

Actuarial movement on defined benefit

(154,000

)

125,000

Income tax relating to other comprehensive

income

38,500

(31,250

)

OTHER COMPREHENSIVE INCOME

FOR THE YEAR, NET OF INCOME TAX

(115,500

)

93,750

TOTAL COMPREHENSIVE INCOME

FOR THE YEAR

255,044

449,292

FIXED ASSETS

Tangible assets

11

280,316

377,842

CURRENT ASSETS

Stocks

12

11,991

10,823

Debtors

13

4,905,233

5,381,434

Cash at bank and in hand

2,060,025

2,425,525

6,977,249

7,817,782

CREDITORS

Amounts falling due within one year

14

5,133,438

6,189,212

NET CURRENT ASSETS

1,843,811

1,628,570

TOTAL ASSETS LESS CURRENT

LIABILITIES

2,124,127

2,006,412

CREDITORS

Amounts falling due after more than one year

15

-

(46,634

)

PROVISIONS FOR LIABILITIES

17

(351,698

)

(417,189

)

PENSION ASSET

20

1,891,000

1,983,000

NET ASSETS

3,663,429

3,525,589

CAPITAL AND RESERVES

Called up share capital

18

500,000

Retained earnings

19

3,163,429

3,025,589

SHAREHOLDERS' FUNDS

3,663,429

3,525,589

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

M B Johnson - Director

N B Travis - Director

Called up

share

Retained

Total

capital

earnings

equity

£

Balance at 30th April 2024

500,000

2,576,297

3,076,297

Changes in equity

Total comprehensive income

-

355,542

Actuarial gains/(losses) on defined

benefit plans

-

125,000

Tax relating to other comprehensive

income

-

(31,250

)

(31,250

)

Balance at 29th April 2025

500,000

3,025,589

3,525,589

Changes in equity

Dividends

-

(117,204

)

(117,204

)

Total comprehensive income

-

370,544

Actuarial gains/(losses) on defined

benefit plans

-

(154,000

)

(154,000

)

Tax relating to other comprehensive

income

-

38,500

Balance at 29th April 2026

500,000

3,163,429

3,663,429

Cash flows from operating activities

Cash generated from operations

1

(182,740

)

847,211

Interest paid

(6,093

)

(14,043

)

Interest element of hire purchase payments

paid

(6,969

)

(11,534

)

Taxation refund

41,364

40,178

Net cash from operating activities

(154,438

)

861,812

Cash flows from investing activities

Purchase of tangible fixed assets

(80,044

)

(232,702

)

Sale of tangible fixed assets

2,500

8,753

Interest received

36,649

53,581

Net cash from investing activities

(40,895

)

(170,368

)

Cash flows from financing activities

Capital repayments in year

(52,963

)

(47,925

)

Equity dividends paid

(117,204

)

-

Net cash from financing activities

(170,167

)

(47,925

)

(Decrease)/increase in cash and cash equivalents

(365,500

)

643,519

Cash and cash equivalents at beginning of

year

2

2,425,525

1,782,006

Cash and cash equivalents at end of year

2

2,060,025

2,425,525

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

2026

2025

£

Profit before taxation

302,189

332,144

Depreciation charges

177,570

153,163

Profit on disposal of fixed assets

(2,500

)

(7,620

)

Pension scheme expenses

48,000

-

Finance costs

13,062

25,577

Finance income

(146,649

)

(146,581

)

391,672

356,683

(Increase)/decrease in stocks

(1,168

)

3,307

Decrease in trade and other debtors

476,201

711,013

Decrease in trade and other creditors

(1,049,445

)

(223,792

)

Cash generated from operations

(182,740

)

847,211

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 29th April 2026

29/4/26

30/4/25

£

Cash and cash equivalents

2,060,025

2,425,525

Year ended 29th April 2025

29/4/25

30/4/24

£

Cash and cash equivalents

2,425,525

1,782,006

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 30/4/25

Cash flow

At 29/4/26

£

Net cash

Cash at bank and in hand

2,425,525

(365,500

)

2,060,025

2,425,525

(365,500

)

2,060,025

Debt

Finance leases

(94,999

)

52,963

(42,036

)

(94,999

)

52,963

(42,036

)

Total

2,330,526

(312,537

)

2,017,989

1.	STATUTORY INFORMATION

Geo Houlton & Sons Limited is a private company, limited by shares , registered in England and Wales. 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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover

Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.

When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.

The company recognises revenue from the following major sources:

- Construction services

The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

Construction services

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

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

10% to 33% on cost

Fixtures and fittings

-

10% to 33% on cost

Motor vehicles

-

20% to 33% on cost

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment loesses.

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 credited or charged to profit or loss.

Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks

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

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Financial instruments

The company 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 company's balance sheet 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.

Basic financial assets

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 using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

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

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

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

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company 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.

Classification of financial liabilities

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

Basic financial liabilities

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

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

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

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments

Equity instruments issued by the company 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 company.

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.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Pension costs and other post-retirement benefits

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

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

Employee benefits

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

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

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

Leases

As lessee

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.

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company 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.

3.	ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company'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.

4.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2026

2025

£

United Kingdom

28,121,824

26,646,344

28,121,824

26,646,344

5.	EMPLOYEES AND DIRECTORS

2026

2025

£

Wages and salaries

4,769,422

4,781,406

Social security costs

621,013

503,929

Other pension costs

338,440

261,460

5,728,875

5,546,795

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

2026

2025

Production

86

87

Admin

44

42

130

129

2026

2025

£

Directors' remuneration

548,062

549,478

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

5

Information regarding the highest paid director is as follows:

2026

2025

£

Emoluments etc

116,959

110,399

6.	OPERATING PROFIT

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

2026

2025

£

Depreciation - owned assets

177,570

153,163

Profit on disposal of fixed assets

(2,500

)

(7,620

)

Auditors' remuneration

19,000

18,000

7.

INTEREST RECEIVABLE AND SIMILAR INCOME

2026

2025

£

Deposit account interest

36,562

53,581

Corporation tax interest received

87

-

36,649

53,581

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

2026

2025

£

Bank interest

6,093

14,043

Hire purchase interest

6,969

11,534

13,062

25,577

9.

TAXATION

Analysis of the tax credit

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

2026

2025

£

Current tax:

Taxation re prior year

(41,364

)

-

Deferred taxation

(26,991

)

(23,398

)

Tax on profit

(68,355

)

(23,398

)

Reconciliation of total tax credit included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2026

2025

£

Profit before tax

302,189

332,144

Profit multiplied by the standard rate of corporation tax in the UK of 25%

(2025 - 25%)

75,547

83,036

Effects of:

Expenses not deductible for tax purposes

5,875

-

Capital allowances in excess of depreciation

-

(19,714

)

Adjustments to tax charge in respect of previous periods

25,452

(43,393

)

R&D Credit re prior year

(41,364

)

-

Changes in unrecognised deferred tax assets

(118,365

)

(23,398

)

Tax at lower/marginal rate

-

(19,929

)

Defined benefit pension scheme adjustments

(15,500

)

-

Total tax credit

(68,355

)

(23,398

)

Tax effects relating to effects of other comprehensive income

2026

Gross

Tax

Net

£

Actuarial movement on defined benefit

(154,000

)

38,500

(115,500

)

2025

Gross

Tax

Net

£

Actuarial gains on defined benefit plans

125,000

(31,250

)

93,750

10.

DIVIDENDS

2026

2025

£

Interim

117,204

-

11.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Motor

machinery

fittings

vehicles

Totals

£

COST

At 30th April 2025

883,958

630,805

715,218

2,229,981

Additions

10,203

31,155

38,686

80,044

Disposals

(559

)

-

(21,470

)

(22,029

)

At 29th April 2026

893,602

661,960

732,434

2,287,996

DEPRECIATION

At 30th April 2025

785,231

543,181

523,727

1,852,139

Charge for year

49,638

26,823

101,109

177,570

Eliminated on disposal

(559

)

-

(21,470

)

(22,029

)

At 29th April 2026

834,310

570,004

603,366

2,007,680

NET BOOK VALUE

At 29th April 2026

59,292

91,956

129,068

280,316

At 29th April 2025

98,727

87,624

191,491

377,842

The net book value of tangible fixed assets includes £28,431 in respect of assets hold under hire purchase contracts.

12.

STOCKS

2026

2025

£

Stocks

11,991

10,823

13.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2026

2025

£

Trade debtors

2,079,039

3,099,906

Amounts owed by group undertakings

1,283,451

1,345,042

Amounts recoverable on contract

1,329,071

779,042

Prepayments and accrued income

213,672

157,444

4,905,233

5,381,434

14.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2026

2025

£

Hire purchase contracts (see note 16)

42,036

48,365

Trade creditors

4,040,198

5,313,218

Social security and other taxes

605,021

402,321

Other creditors

75,847

92,405

Accruals and deferred income

370,336

332,903

5,133,438

6,189,212

15.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE

YEAR

2026

2025

£

Hire purchase contracts (see note 16)

-

46,634

16.	LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

2026

2025

£

Net obligations repayable:

Within one year

42,036

48,365

Between one and five years

-

46,634

42,036

94,999

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. 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 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

17.	PROVISIONS FOR LIABILITIES

2026

2025

£

Deferred tax

Accelerated capital allowances

23,418

50,409

Retirement benefit obligations

328,280

366,780

351,698

417,189

Deferred

tax

£

Balance at 30th April 2025

417,189

Credit to Income Statement during year

(26,991

)

Charge/(credit) to other

comprehensive income

(38,500

)

Balance at 29th April 2026

351,698

The expected net reversal of deferred tax assets and liabilities in the year to 29th April 2027 is £23,584. This is due to the reversal of accelerated capital allowances and other short term timing differences.

18.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2026

2025

value:

£

500,000

Ordinary

£1

500,000

Ordinary shares include full rights on voting dividends and repayment of capital.

19.

RESERVES

Retained

earnings

£

At 30th April 2025

3,025,589

Profit for the year

370,544

Dividends

(117,204

)

Actuarial gains/(losses) on defined

benefit plans

(154,000

)

Tax relating to other comprehensive

income

38,500

At 29th April 2026

3,163,429

20.	EMPLOYEE BENEFIT OBLIGATIONS

The company operates a defined benefit pension arrangement in the UK. This is a separate trustee administered fund holding the pension scheme assets to meet long term pension liabilities. A full actuarial valuation was carried out at 30th April 2023 and the results updated by a qualified actuary, independent of the scheme's sponsoring employer. The scheme was closed to both new entrants and to future accrual on 31st March 2015.

The amounts recognised in the balance sheet are as follows:

Defined benefit

pension plans

2026

2025

£

Present value of funded obligations

(5,766,000

)

(5,729,000

)

Fair value of plan assets

7,657,000

7,712,000

1,891,000

1,983,000

Present value of unfunded obligations

-

Surplus

1,891,000

1,983,000

Net asset

1,891,000

1,983,000

The amounts recognised in profit or loss are as follows:

Defined benefit

pension plans

2026

2025

£

Current service cost

-

Net interest from net defined benefit

asset/liability

(110,000

)

(93,000

)

Past service cost

-

Expenses paid

48,000

-

(62,000

)

(93,000

)

Actual return on plan assets

267,000

98,000

Changes in the present value of the defined benefit obligation are as follows:

Defined benefit

pension plans

2026

2025

£

Opening defined benefit obligation

5,729,000

6,227,000

Interest cost

312,000

317,000

Benefits paid

(322,000

)

(378,000

)

Remeasurements:

Experience (gains)/losses on Scheme

liabilities

187,000

(24,000

)

Assumptions (gains)/losses on Scheme

liabilities

(140,000

)

(413,000

)

5,766,000

5,729,000

Changes in the fair value of scheme assets are as follows:

Defined benefit

pension plans

2026

2025

£

Opening fair value of scheme assets

7,712,000

7,992,000

Expenses paid

(48,000

)

-

Interest income

422,000

410,000

Experience gains/(losses) on Scheme assets

(107,000

)

(312,000

)

Benefits paid

(322,000

)

(378,000

)

7,657,000

7,712,000

The amounts recognised in other comprehensive income are as follows:

Defined benefit

pension plans

2026

2025

£

Experience gains/(losses) on Scheme

liabilities

(187,000

)

24,000

Assumptions gains/(losses) on Scheme

liabilities

140,000

413,000

Experience gains/(losses) on Scheme assets

(107,000

)

(312,000

)

(154,000

)

125,000

The major categories of scheme assets as amounts of total scheme assets are as follows:

Defined benefit

pension plans

2026

2025

£

Equity instruments

819,000

3,028,000

Gilts

4,916,000

3,086,000

Bonds

1,485,000

1,080,000

Property

-

189,000

Cash and alternatives

31,000

311,000

Insured annuities

15,000

18,000

Absolute return fund

391,000

-

7,657,000

7,712,000

The assets do not include any direct investment in the company.

Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

2026

2025

Discount rate

5.95%

5.60%

Revaluation in deferment

3.10%

2.55%

Pension increases: post 97 pension

3.10%

2.95%

Pension increases: post 06 pension

2.05%

2.10%

Mortality assumption

110% S4PA
CMI 2024
1.0%

110% S4PA
CMI 2023
1.0%

Under the mortality tables adopted, the assumed life expectancy at age 65 is as follows:

2026

2025

Years

Male currently aged 45

21.7

21.4

Male currently aged 65

20.7

20.4

Female currently aged 45

24.2

24.1

Female currently aged 65

23.0

21.	ULTIMATE PARENT COMPANY

Geo Houlton & Sons (Holdings) Limited is regarded as being the company's ultimate parent company.

Geo Houlton & Sons (Holdings) Limited prepares consolidated financial statements which include the results of the company and its fellow subsidiary undertakings. Copies of these consolidated financial statements can be obtained from Hyperion Street, Hull, HU9 1BD.

22.	NON ADJUSTING EVENTS

Subsequent to the balance sheet date, the triannual actuarial valuation of the pension scheme as of 30th April 2026 is currently in progress and is expected to be completed early 2027.

No adjustments have been made to these financial statements. The disclosures in note 20 represent financial assumptions using the projected unit method based on the most recent formal valuation as at 30th April 2023.