ACCOUNTS - Final Accounts

Registered number: 02771568

DDS DEMOLITION LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

DDS DEMOLITION LIMITED

COMPANY INFORMATION

Directors	Mr L Ray
	Mr S Ray
	Mr W Ray
	Mr T Worrall
	Mr M Hennessy


Registered number	02771568


Registered office	Henwood House
	Henwood
	Ashford
	Kent
	TN24 8DH


Trading Address	Charles Anthony House
	Manston Road
	Margate
	Kent
	CT9 4JW



Independent auditors	Magee Gammon Corporate Limited
	Chartered Accountants & Statutory Auditors
	Henwood House
	Henwood
	Ashford
	Kent
	TN24 8DH


Bankers	Handelsbanken plc
	2nd Floor
	Riverside House
	40-46 High Street
	Maidstone
	Kent
	ME14 1JH

DDS DEMOLITION LIMITED

CONTENTS

	Page
Strategic Report	1 - 3
Directors' Report	4 - 5
Independent Auditors' Report	6 - 9
Statement of Income and Retained Earnings	10
Balance Sheet	11
Notes to the Financial Statements	12 - 28

DDS DEMOLITION LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2025

Introduction

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

Business review

The results for the company show a pre-tax profit of £195,328 (2024: profit £12,624) for the year and sales of £7,776,086 (2024: £7,629,649).
The level of turnover achieved during the year ended 31 December 2025 is higher than that achieved in the previous financial year and the overall result reflects a profit for the year.

The results of the trading subsidiary companies and dormant subsidiary companies are not included in the results of these financial statements. Separate financial statements have been prepared for the subsidiary companies, as well as all group company results being reflected in the consolidated financial statements of the ultimate parent undertaking 1948 Group Limited.

During the year DDS Contracting Services Limited, a subsidiary company, achieved a profit for the year.

It is considered that the activities of the trading subsidiary DDS Contracting Services Limited, being that of contract management and groundworks complement the demolition services provided by the company, and will hopefully result in further work being generated by being able to work on projects, which previously were not possible or involved significant costs.

The directors therefore consider that the company is well placed for the forthcoming year and going forward.

Principal risks and uncertainties

The management of the business and the execution of the company's strategy are subject to a number of risks.

Risks are formally reviewed by the Board and appropriate processes put in place to monitor and mitigate them. If more than one event occurs, it is possible that the overall effect of such events would compound the possible adverse effects on the company. The key business risks affecting the company are set out below.

Competition
The company operates in a competitive market particularly with regard to pricing and service. This results not only in downward pressure on margins but also the risk of not attracting new contracts. In order to mitigate this risk the company's management regularly review results of the company throughout the year and try to address any factors identified that have arisen which are considered inefficient or could impact upon results further if changes are not made.

Employee Skills and Retention
The company's performance depends largely on its general manager, operations staff and other key employees. The loss of these individuals and the inability to recruit people with the right experience and skills from the local community could adversely impact the company's results. The Board continues to monitor salaries of key personnel to ensure salaries paid remain current and at expected market levels and staff are appropriately rewarded, thus helping to motivate and retain key individuals.

Page 1

DDS DEMOLITION LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

Financial key performance indicators

The company has made significant progress in relation to the company's overriding objective. The company monitors the overall progress and the individual strategic elements by reference to the following KPIs.

Performance together with historical data is set out below:

Growth in sales
Year on year sales growth expressed as a percentage. Sales have increased significantly during the year. Ongoing contracts should enable further growth as well as increase in customer base and customer loyalty.

'Increase in sales for 2025 is 1.92% compared with a decrease of (28.44)% in 2024.

Gross profit
Gross profit is the ratio of profit on sale of products and services, expressed as a percentage. The gross margin has decreased upon that reported last year and percentages are in line with expectations.

Gross profit percentage for 2025 is 21.60% compared with 17.50% in 2024.

Return on invested capital
Operating profit expressed as a percentage of net assets. Return on invested capital is in line with our expectations and the return achieved was lower than reported in the comparative year.

Return on invested capital for 2025 is 13.24% compared with 5.36% in 2024.

Other key performance indicators

Given the straight forward nature of the business activities, the directors are of the opinion that disclosure of any other KPI's is not necessary for an understanding of the results of the company.

Page 2

DDS DEMOLITION LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

Financial risk management

The company's funding, liquidity and exposure to interest rate risks are managed by the directors of the company. The management of this is conducted within a framework of policies and guidelines authorised by the Board of the company.

The company's financial instruments comprise borrowings, cash and liquid resources, and various items such as trade debtors, trade creditors and inter-group funding that arise directly from its operating activities. The main purpose of the financial instruments is to raise finance for the company's operations.

This is particularly relevant with regard to the parent undertaking 1948 Group Limited. Although the company has capital expenditure, the premises used by the company are funded by and reported in the financial statements of 1948 Group Limited.

The company publishes its financial statements in pounds sterling and although there may be some foreign currency transactions, the foreign currency risk is considered minimal.

It is, and has been throughout the year under review, the company's policy that no trading in financial instruments shall be undertaken.

The main risks arising from the company's financial instruments are interest rate and liquidity risk. The board of directors reviews and agrees policies for managing each of these risks and they are summarised as follows:

Credit risk
The main exposure the company has to credit risk is that arising from credit sales. The credit risk of new customers is assessed routinely and appropriate levels of trading permitted based on the results of credit rating reviews. At the year end date, the maximum exposure to credit risk is represented by the carrying amount of each financial asset in the Balance Sheet.

Liquidity and cashflow risk
As regards liquidity, the company's policy throughout the year has been to ensure continuity of funding.

Interest rate risk
The company finances its operations through bank borrowings when required and hire purchase and finance lease agreements. The bank borrowings are at floating rates based principally on Bank of England base rates, and finance agreements at fixed rates.

The Board will consider the appropriateness of financing should the operations change significantly in size or nature.

This report was approved by the board on 7 October 2026 and signed on its behalf.

................................................

Mr W Ray

Director

Page 3

DDS DEMOLITION LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2025

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

Directors' responsibilities statement

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

In preparing these financial statements, the directors are required to:

∙select suitable accounting policies for the Company's financial statements and then apply them consistently;

∙make judgments and accounting estimates that are reasonable and prudent;

∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

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

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in Directors' Reports may differ from legislation in other jurisdictions.

Results and dividends

The profit for the year, after taxation, amounted to £142,190 (2024 - £13,621).

No dividends were paid during the year. The directors do not recommend the payment of any further dividends for the year.

Directors

The directors who served during the year were:

Mr L Ray

Mr S Ray

Mr W Ray

Mr T Worrall

Mr M Hennessy

Page 4

DDS DEMOLITION LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

Future developments

The Company has had a successful year and the directors believe that the business is well placed in the forthcoming year to achieve a good level of performance and remain profitable.

Despite the uncertain global economic outlook, going forward, the company predicts modest growth in turnover, but also expects continued pressure on margins.

The directors are satisfied with the financial position of the company and continue to look to the future with optimism.

Matters covered in the strategic report

Financial risk management objectives and policies of the Company are detailed in the Strategic Report.

Disclosure of information to auditors

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

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

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

Auditors

The auditors, Magee Gammon Corporate Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 7 October 2026 and signed on its behalf.

................................................

Mr W Ray

Director

Page 5

DDS DEMOLITION LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DDS DEMOLITION LIMITED

Opinion

We have audited the financial statements of DDS Demolition Limited (the 'Company') for the year ended 31 December 2025, which comprise the Statement of Income and Retained Earnings, the Balance Sheet and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

∙give a true and fair view of the state of the 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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 other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Page 6

DDS DEMOLITION LIMITED

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

Opinion on other matters prescribed by the Companies Act 2006

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

∙the information given in the 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.

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 Directors' Report.

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

∙adequate accounting records have not been kept, 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 Directors' Responsibilities Statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the 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.

Page 7

DDS DEMOLITION LIMITED

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

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Capability of the audit in detecting irregularities including fraud

Based on our understanding of the company, we have considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management incentives and opportunities for fraudulent manipulation of the financial statements including management override, and considered that the principal risk was related to the posting of inappropriate journal entries to improve the result before tax for the year.

We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion.

Procedures performed by the audit team included:

• Discussions with management regarding known or suspected instances of non-compliance with laws and
regulations;
• Evaluation of controls designed to prevent and detect irregularities; and
• Assessing journal entries as part of our planned audit approach.

There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. As in all of our audits we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

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

Page 8

DDS DEMOLITION LIMITED

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

Use of our report

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

Mr Andrew John Childs FCA (Senior Statutory Auditor)

for and on behalf of

Magee Gammon Corporate Limited

Chartered Accountants

Statutory Auditors

Henwood House

Henwood

Ashford

Kent

TN24 8DH

8 October 2026

Page 9

DDS DEMOLITION LIMITED

STATEMENT OF INCOME AND RETAINED EARNINGS

FOR THE YEAR ENDED 31 DECEMBER 2025

	2025	2024
Note


Turnover	4	7,776,086	7,629,649
Cost of sales		(6,098,405)	(6,294,011)
Gross profit		1,677,681	1,335,638
Administrative expenses		(1,388,895)	(1,200,106)
Operating profit	5	288,786	135,532
Interest receivable and similar income	9	397	-
Interest payable and similar expenses	10	(93,855)	(122,908)
Profit before tax		195,328	12,624
Tax on profit	11	(53,138)	997
Profit after tax		£142,190	£13,621



Retained earnings at the beginning of the year	1,242,558	1,228,937
Profit for the year	142,190	13,621
Retained earnings at the end of the year	£1,384,748	£1,242,558

The notes on pages 12 to 28 form part of these financial statements.

Page 10

DDS DEMOLITION LIMITED

REGISTERED NUMBER: 02771568

BALANCE SHEET

AS AT 31 DECEMBER 2025

		2025		2024
Note

Fixed assets
Tangible assets	12		1,713,918		2,188,791
Investments	13		101		101
			1,714,019		2,188,892
Current assets
Stocks	14	322,910		280,711
Debtors: amounts falling due within one year	15	2,246,712		2,495,159
Cash at bank and in hand	16	564,089		298,612
		3,133,711		3,074,482
Creditors: amounts falling due within one year	17	(2,666,639)		(2,733,356)
Net current assets			467,072		341,126
Total assets less current liabilities			2,181,091		2,530,018
Creditors: amounts falling due after more than one year	18		(400,273)		(777,176)
Provisions for liabilities
Deferred tax	21		(396,068)		(510,282)
Net assets			£1,384,750		£1,242,560

Capital and reserves
Called up share capital	22	2	2
Profit and loss account		1,384,748	1,242,558
		£1,384,750	£1,242,560

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 7 October 2026.

................................................

Mr W Ray

Director

The notes on pages 12 to 28 form part of these financial statements.

Page 11

DDS DEMOLITION LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

1.	General information

DDS Demolition Limited is a private limited company incorporated in England and Wales. The Company is limited by shares and the address of its registered office is Henwood House, Henwood, Ashford, Kent, TN24 8DH. The address of the principal place of business is Charles Anthony House, Manston Road, Margate, Kent, CT9 4JW.

The registered number of the Company is 02771568.

The principal activity of the Company is that of demolition contractors and salvage yard operators.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

∙the requirements of Section 7 Statement of Cash Flows;

∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);

∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of 1948 Group Limited as at 31 December 2025 and these financial statements may be obtained from Charles Anthony House, Manston Road, Margate, Kent CT9 4JW.

Page 12

DDS DEMOLITION LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.3

Revenue

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

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Company has transferred the significant risks and rewards of ownership to the buyer;

∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

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

∙the amount of revenue can be measured reliably;

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

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

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

2.4

Operating leases: the Company as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

2.5

Interest income

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

2.6

Finance costs

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

Page 13

DDS DEMOLITION LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.7

Pensions

Defined contribution pension plan

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

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

2.8

Current and deferred taxation

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

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

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

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

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

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

2.9

Tangible fixed assets

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

Page 14

DDS DEMOLITION LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.9

Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Plant and machinery	-	15% - 25%
Motor vehicles	-	15% - 25%
Fixtures and fittings	-	15% - 25%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

2.10

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

2.11

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

2.12

Debtors

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

2.13

Cash and cash equivalents

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

2.14

Creditors

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

2.15

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

Page 15

DDS DEMOLITION LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.16

Provisions for liabilities

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

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

Deferred tax liabilities are also presented within provisions but are measured in accordance with the accounting policy on taxation.

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

2.17

Financial instruments

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

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit or loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

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 the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

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

Derecognised assets/liabilities

Derecognition of financial instruments

Page 16

DDS DEMOLITION LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.17

Financial instruments (continued)

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flows expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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

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

In the application of the Company's accounting policies, which are described in note 2, management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below:

Depreciation and residual values
The directors have reviewed the useful economic life and associated residual values for all classes of fixed assets and have concluded that asset lives and residual values are appropriately reflected.

Amounts recoverable on long term contracts
Amounts recoverable on long term contracts is an estimate based on revenue recognised in the period in which the services are provided, in accordance with the stage of completion of the contract, when all of the four conditions as described in note 2.3 are satisfied. Management’s basis for determining the stage of completion is derived from valuation reports which denote the value of works completed and estimated profitability of the contract.

Page 17

DDS DEMOLITION LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Turnover

	An analysis of turnover by class of business is as follows:
					2025	2024

Demolition, contract work and salvage	7,727,854	7,592,853
Rental income	48,232	36,796
	£7,776,086	£7,629,649

All turnover arose within the United Kingdom.

5.	Operating profit
	The operating profit is stated after charging:
		2025	2024

Depreciation of tangible fixed assets	600,264	734,769
Profit on sale of fixed assets	(336,225)	(30,740)
Operating lease rentals	254,672	199,077
Defined contribution pension cost	£64,422	£35,110

6.	Auditors' remuneration
	During the year, the Company obtained the following services from the Company's auditors:
		2025	2024

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

12,250

29,600

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated financial statements of the parent Company.

Page 18

DDS DEMOLITION LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

7.	Employees
	Staff costs, including directors' remuneration, were as follows:
		2025	2024

Wages and salaries	1,673,847	1,653,713
Social security costs	220,556	172,023
Cost of defined contribution scheme	64,422	35,110
	£1,958,825	£1,860,846

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

	2025	2024
	No.	No.

Administration	9	9
Production	38	38
Directors	5	5

	52	52

8.	Directors' remuneration
					2025	2024

Directors' emoluments	214,547	215,802
Company contributions to defined contribution pension schemes	4,710	2,642
	£219,257	£218,444

	During the year retirement benefits were accruing to 2 directors (2024 - 2) in respect of defined contribution pension schemes.
	The highest paid director received remuneration of £107,988 (2024 - £111,109).
	The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £1,321 (2024 - £1,321).

9.	Interest receivable
					2025	2024

Other interest receivable

£397

£-

Page 19

DDS DEMOLITION LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

10.	Interest payable and similar expenses
					2025	2024

Bank interest payable	5,073	6,327
Finance leases and hire purchase contracts	88,782	116,581
	£93,855	£122,908

11.	Taxation

		2025	2024

Corporation tax
Current tax on profits for the year	167,352	139,899

Total current tax	£167,352	£139,899

Deferred tax
Origination and reversal of timing differences	(114,214)	(140,896)
Total deferred tax	£(114,214)	£(140,896)


	Profit after tax	£53,138	£(997)

Factors affecting tax charge for the year
The tax assessed for the year is higher than (2024 - lower than) the standard rate of corporation tax in the UK of 25.00% (2024 - 25.00%). The differences are explained below:
	2025	2024

Profit on ordinary activities before tax

£195,328

£12,624

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25.00% (2024 - 25.00%)	48,832	3,156
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	3,777	2,436
Capital allowances for year in excess of depreciation	529	20,530
Utilisation of tax losses	-	(27,119)
Total tax charge for the year	£53,138	£(997)

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 20

DDS DEMOLITION LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

12.	Tangible fixed assets

	Plant and machinery	Motor vehicles	Fixtures and fittings	Total
Cost or valuation
At 1 January 2025	5,062,128	919,564	263,766	6,245,458
Additions	204,970	88,736	24,723	318,429
Disposals	(1,202,228)	(54,779)	-	(1,257,007)
At 31 December 2025	4,064,870	953,521	288,489	5,306,880
Depreciation
At 1 January 2025	3,342,324	493,440	220,903	4,056,667
Charge for the year on owned assets	90,206	33,294	12,760	136,260
Charge for the year on financed assets	376,317	86,283	1,404	464,004
Disposals	(1,022,612)	(41,357)	-	(1,063,969)
At 31 December 2025	2,786,235	571,660	235,067	3,592,962
Net book value
At 31 December 2025	£1,278,635	£381,861	£53,422	£1,713,918
At 31 December 2024	£1,719,804	£426,124	£42,863	£2,188,791

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


Plant and machinery	1,066,804	1,418,544
Motor vehicles	293,902	383,832
Furniture, fittings and equipment	11,026	-
	£1,371,732	£1,802,376

Page 21

DDS DEMOLITION LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

13.	Fixed asset investments

		Investments in subsidiary companies
	Cost or valuation
	At 1 January 2025	101
	At 31 December 2025	£101

Subsidiary undertakings
The following were subsidiary undertakings of the Company:
Name	Registered office	Principal activity	Class of shares	Holding

	DDS Environmental Limited	Henwood House, Henwood, Ashford, Kent, TN24 8DH	Dormant	£1 Ordinary	100%
	DDS Contracting Services Limited	Henwood House, Henwood, Ashford, Kent, TN24 8DH	Contract management and groundworks	£1 Ordinary	100%

14.	Stocks
					2025	2024

Raw materials and consumables	41,542	42,973
Work in progress	281,368	237,738
	£322,910	£280,711

15.

Debtors

2025

2024


Trade debtors	1,494,162	1,699,658
Amounts owed by group undertakings	442,588	481,730
Other debtors	13,401	65,050
Prepayments and accrued income	296,561	248,721
	£2,246,712	£2,495,159

Page 22

DDS DEMOLITION LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

16.	Cash and cash equivalents
					2025	2024

	Cash at bank and in hand	£564,089	£298,612

17.	Creditors: Amounts falling due within one year
					2025	2024

Trade creditors	922,286	1,120,585
Amounts owed to group undertakings	454,569	580,469
Corporation tax	164,630	-
Other taxation and social security	165,682	77,983
Obligations under finance lease and hire purchase contracts	563,160	646,398
Other creditors	223,655	195,958
Accruals and deferred income	172,657	111,963
	£2,666,639	£2,733,356

	The following liabilities were secured:
					2025	2024


	Obligations under finance lease and hire purchase contracts	563,160	646,398

Details of security provided:

Bank overdrafts are secured by a fixed and floating charge over the undertaking and all property and assets held by the company.

Finance lease and hire purchase contracts totalling £563,160 (2024: £646,398) are secured on the assets concerned. Repayments are fixed monthly contracted amounts with rates of interest between 1.36% and 10.99% (2024:1.27% and 6.49%) being applied.

Page 23

DDS DEMOLITION LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

18.	Creditors: Amounts falling due after more than one year
					2025	2024

	Net obligations under finance leases and hire purchase contracts	£400,273	£777,176

	The following liabilities were secured:
					2025	2024


	Net obligations under finance leases and hire purchase contracts	400,273	777,176

Details of security provided:

Finance lease and hire purchase contracts totalling £400,273 (2024: £777,176) are secured on the assets concerned.

Repayments are fixed monthly contracted amounts with rates of interest between 1.36% and 10.99% (2024: 1.27% and 6.49%) being applied.

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

Within one year	563,160	646,398
Between 1-2 years	333,426	509,396
Between 2-5 years	66,847	267,780
	£963,433	£1,423,574

Page 24

DDS DEMOLITION LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

20.	Financial instruments
					2025	2024

Financial assets
Financial assets measured at fair value through profit or loss	564,089	298,612
Financial assets that are debt instruments measured at amortised cost	1,950,151	2,246,438
	£2,514,240	£2,545,050

	Financial liabilities
	Financial liabilities measured at amortised cost	£(1,773,167)	£(2,008,975)

	Financial assets measured at fair value through profit or loss comprise cash at bank and in hand.
	Financial assets that are debt instruments measured at amortised cost comprise trade debtors, amounts owed by group undertakings and other debtors.
	Financial liabilities measured at amortised cost comprise bank overdrafts, trade creditors, amounts owed to group undertakings, other creditors, accruals and deferred income.

21.	Deferred taxation

	2025	2024

At beginning of year	510,282	651,178
Charged to profit or loss	(114,214)	(140,896)
At end of year	£396,068	£510,282

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

Accelerated capital allowances

£396,068

£510,282

22.	Share capital
					2025	2024

Allotted, called up and fully paid

2 (2024 : 2) Ordinary shares of £1.00 each	£2	£2

23.	Contingent liabilities

Banking arrangements are secured by an unlimited cross guarantee between 1948 Group Limited, DDS Demolition Limited and Thanet Waste Services Limited.

Page 25

DDS DEMOLITION LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

24.	Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £64,422 (2024: £35,110). Pension contributions totalling £1,526 (2024: £6,442) were payable to the fund at the balance sheet date.

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

Not later than 1 year	61,287	121,951
Later than 1 year and not later than 5 years	48,750	86,867
	£110,037	£208,818

Page 26

DDS DEMOLITION LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

26.

Related party transactions

During the year, the company supplied goods and services totalling £886 (2024: £293) to REWD Limited and paid for goods and services on behalf of REWD Limited totalling £1,542 (2024: £90). The company also repaid funds totalling £130,000 (2024: received funds £130,000). The amount due from/(to) REWD Limited at the balance sheet date was £4,117 (2024: (£127,073)).

Mr W Ray has an interest in the transactions by virtue of his shareholding in REWD Limited.

During the year, the company supplied goods and services totalling £Nil (2024: £745) to REWD Box (Thanet) Limited and paid for goods and services on behalf of REWD Box (Thanet) Limited totalling £1,629 (2024: £Nil). The amount due from REWD Box (Thanet) Limited at the balance sheet date was £2,788 (2024: £1,159).

Mr W Ray has an interest in the transactions by virtue of his directorship and shareholding in REWD Box (Thanet) Limited.

During the year, the company supplied goods and services totalling £50,279 (2024: £1,046) to P & R Investments (Kent) Limited. The amount due from P & R Investments (Kent) Limited at the balance sheet date was £52 (2024: £1,482).

Mr W Ray has an interest in the transactions by virtue of his directorship and shareholding in P & R Investments (Kent) Limited.

During the year, the company received goods and services totalling £91,681 (2024: £65,912) from Just Welfare Limited and supplied goods and services totalling £267,244 (2024: £153,257). The amount due from/(to) Just Welfare Limited at the balance sheet date was £42,253 (2024: £40,392).

Mr W Ray, Mr T Worrall and Mr M Hennessy, directors of the company, have an interest in the transactions by virtue of their shareholding in Just Welfare Limited.

During the year, the company supplied goods and services totalling £Nil (2024: £347) to Southwood Design & Build Limited. The amount due from Southwood Design & Build Limited at the balance sheet date was £Nil (2024: £Nil).

Mr L Ray has an interest in the transactions by virtue of his directorship and shareholding in Southwood Design & Build Limited.

During the year, the company paid funds totalling £35,000 (2024: received funds £35,000) from One Thirty (Kent) Limited Limited. The amount due to One Thirty (Kent) Limited at the balance sheet date was (£Nil) (2024: £35,000).

Mr W Ray has an interest in the transactions by virtue of his directorship and shareholding in One Thirty (Kent) Limited.

During the year there was a loan with Mr T Worrall, a director of the company. The loan is interest free. The balance due to Mr T Worrall at the balance sheet date was £4,745 (2024: £4,745).

Gross remuneration including pension contributions paid to family members during the year totalled £89,230 (2024: £63,710).

All transactions were at arms length and in the normal course of business.

Page 27

DDS DEMOLITION LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

27.	Ultimate parent undertaking and controlling party

At the balance sheet date, the ultimate and immediate parent undertaking is 1948 Group Limited, a company incorporated in England and Wales.

1948 Group Limited is the controlling party of the company.

The parent undertaking of the smallest group to consolidate their financial statements is 1948 Group Limited, a company incorporated in England and Wales. The registered office of the company is Henwood House, Henwood, Ashford, Kent, TN24 8DH.

The parent undertaking of the largest group to consolidate these financial statements is 1948 Group Limited, a company incorporated in England and Wales. The registered address of the company is Henwood House, Henwood, Ashford, Kent, TN24 8DH.

The ultimate parent undertaking is 1948 Group Limited, a company incorporated in England and Wales.

1948 Group Limited is also the most senior parent entity producing publicly available financial statements.

1948 Group Limited is the ultimate controlling party of the company. The controlling party of the parent undertaking are the directors of that company by virtue of a combined interest of 100% of the issued share capital of the company.

The company is exempt from the requirement of preparing consolidated financial statements as it is a subsidiary undertaking included in consolidated financial statements for a larger group, by a parent undertaking established under the law of any part of the United Kingdom.

1948 Group Limited has prepared consolidated financial statements which include this company and are publicly available.

Page 28