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

During the year under review, we took the difficult decision to close B&M Concrete Products Ltd, which did also impact our 2024 results, with the subsequent goodwill write-down last year.

Otherwise, there have not been any significant changes in the Group's principal activities in the year under review and, at the date of this report, the directors are not aware of any likely changes in the Group's activities in the next year.

The Group's turnover increased by 3.45% compared to the prior year, whilst cost of sales decreased by 2.11% resulting in an decrease in the level of operating losses. Additionally, the result before tax has improved from a loss of £1,774,262 to a loss of £580,559.

Trading conditions elsewhere across the business did improve slightly in 2025 and we are seeing some benefit from the tough decisions we have made over the last few years, however, competition is still high and there continues to be over capacity in the markets we operate.

The KPIs used to determine the progress and performance of the Group are set out below:

• Turnover

The Group's level of turnover has increased as indicated above.

• Customer base

The Group has a wide range of customers to whom we provide a variety of products. Management continue to focus on providing excellent service to both new and existing customers alike.

• Gross profit margin

The Group's gross profit margin increased in the year under review from 27.5% to 31.4%, which reflects market conditions during 2025.

The balance sheet shows that the Group's net assets at the year end have increased from £28,924,648 to £28,785,618. This is due to the profit after tax, which has been retained, less dividends paid.

The Group generated cash from operations of £673,609 and invested £940,945 in fixed assets.

Management continually monitor the key risks facing the Group, together with assessing the controls used for managing these risks.

The principal risks and uncertainties facing the Group are as follows:

• Economic - the Group acknowledges the importance of maintaining close relationships with its key customers in order to be able to identify the early signs of potential financial difficulties. Sales trends in its major markets are constantly reviewed to enable early action to be taken in the event of sales declining. Additionally, measures are in pace to mitigate the likely effects of inflation and rising interest rates.

• Competitor pressure - the market in which the Group operates is considered to be highly competitive, and therefore competitor pressure could result in losing sales to key competitors. The Group manages this risk by providing quality products (both retail and trade) and maintaining strong relationships with its key trade customers.

• Reliance on key suppliers - the Group's purchasing activities could expose it to over reliance on certain suppliers and inflationary pricing pressures. The Group manages this risk by ensuring there is enough breadth in its supplier base and by constantly seeking to find potential alternative suppliers that may be used, if necessary.

• Loss of key personnel - this could present significant operational difficulties for the Group. Management seek to ensure that key personnel are appropriately remunerated and that good performance is recognised.

By order of the board

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

The principal activity of the company and Group continued to be that of the manufacture of concrete products, the importing of stone and other paving material and associated items, and the sale of concrete and stone paving and similar products, as well as the retail sale of flowers, plants, seeds, fertilisers, pet animals and pet food in specialised stores.

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £495. The directors do not recommend payment of a further dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The Group's principal financial instruments comprise bank loans, overdrafts, hire purchase and loans from shareholders. The main purpose of these instruments is to raise funds for and to finance the Group's operations. Due to the nature of the financial instruments used by the company there is no exposure to price risk. The Group's approach to managing other risks applicable to the financial instruments concerned is shown below.

In respect of the bank balances the liquidity risk is managed by transferring funds between the accounts of the Group to obtain the maximum rate of interest, whilst not impacting on the immediate financial needs of the Group.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

The market conditions experienced during the year are expected to continue in the medium term and we don’t see any improvement coming from the UK economy. While there are indications of stabilisation in demand across certain product categories, we expect trading conditions to remain competitive across the Group.

Customer spending continues to be influenced by elevated interest rates, ongoing geopolitical uncertainty and tensions in the Middle East. Global economic uncertainty may indirectly impact the Group through supply chain disruption and energy price volatility.

We remain focused on cost control and management continue to critically assess performance across all areas of the business.

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

The directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt a going concern basis in preparing the annual financial statements.

Further details regarding the adoption of the going concern basis can be found in note 1.4 to the financial statements.

The directors are responsible for preparing the Annual 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 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 group and company, and of the profit or loss of the group 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;

• 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 group and company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

We have audited the financial statements of Castacrete Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 2025 and of the group's loss 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's 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.

Opinions on other matters prescribed by the Companies Act 2006

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

• The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the group and the parent company and their 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent company 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.

As explained more fully in the directors' responsibilities statement, 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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.

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 auditor's 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.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

• Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud; 

• Reviewing minutes of meetings of those charged with governance;

• Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection; 

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

• Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias. 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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 auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £570,406 (2024 - £2,418,597 loss). Included within this loss were exceptional costs totalling £170,000 (2024: £1,468,517).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

Castacrete Limited (“the company”) is a private company limited by shares domiciled and incorporated in England and Wales. The registered office is Stone House, Dean Street, East Farleigh, Maidstone, Kent, United Kingdom, ME15 0PW.

The group consists of Castacrete Limited and all of its subsidiaries.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, 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.

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated group financial statements consist of the financial statements of the parent company Castacrete Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 31 December 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

At the time of approving the financial statements, taking into consideration all relevant factors and other evidence available to the directors in respect of the Group's trading prospects, the directors remain satisfied that the Group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover represents net invoiced sales of goods and services, excluding value added tax. Invoices are issued once goods have been delivered and the company has a right to consideration. Turnover derives solely from the principal activities of the Group.

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Tangible fixed assets, other than freehold investment properties, are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Freehold land and buildings (other than investment properties) are included at their valuation as at 31 December 2013, plus subsequent additions at cost, less depreciation and any impairment losses. The valuations at 31 December 2013 are treated as deemed cost in accordance with the provisions of Section 35.10 (d) of FRS 102.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

At each reporting 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.

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.

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.

Stock and work in progress is valued at the lower of cost and estimated selling price (less trade discounts) less all further costs to completion and all costs to be incurred in marketing, selling and distribution.

In the case of raw materials and consumable stores, cost means purchase price including transport and handling costs, less trade discounts, calculated on a first in first out basis. In the case of finished goods, cost comprises direct materials, direct labour and attributable production and other overheads that have been incurred in bringing the stocks to their present location and condition.

Moulds are expensed over 3 or 6 years on a straight line basis.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The group applies the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments, which are classified as basic.

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

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, 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.

Financial assets 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. The impairment loss is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity,

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

Basic financial liabilities, including creditors, bank loans, 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.

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.

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

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

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.

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

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

In assessing whether there have been any indicators of impairments of assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability. There have been no material indicators of impairments identified during the current financial year other than in respect of bad and doubtful trade debtor balances recognised in the financial statements.

The Group depreciates tangible assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes.

Judgement is applied by management when determining the residual values for tangible fixed assets. When determining the residual value management aim to assess the amount that the Group would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life. Where possible this is done with reference to external market prices.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Where an indication of impairment exists the directors will carry out an impairment review to determine the recoverable amount, which is the higher of fair value less cost to sell and value in use. The value in use calculation requires the directors to estimate the future cash flows expected to arise from the asset or the cash generating unit and a suitable discount rate in order to calculate present value.

The Group establishes a provision for receivables that are estimated not to be recoverable. When assessing recoverability the directors consider factors such as the ageing of the receivables, past experience of recoverability, and the credit profile of individual or groups of customers.

The Group's turnover relates solely to its principal activity and arises in the United Kingdom.

The average monthly number of persons (including directors) employed by the group and company during the year was:

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2024 - 3) as at 31 December 2024.

The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

The carrying value of land and buildings comprises:

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

The freehold land and buildings were revalued as at 31 December 2013 by Sibley Pares Limited, Chartered Surveyors, on the basis of the open market value for existing use. For property owned at 31 December 2013 the values at that date are treated as deemed cost in accordance with the provisions of Section 35.10 (d) of FRS 102. Subsequent additions are included at cost.

If assets included at deemed cost were instead reflected on a historical cost basis, the total amount included in land and buildings would have been as follows:

At the year end, the Group and company owned 5 (2024: 5) investment properties.

The fair value of the first investment property is £300,000, arrived at on the basis of a valuation carried out at 31 December 2013 by independent valuers and chartered surveyors, Sibley Pares Limited. The professional valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

Additionally, during 2017, a 10 year rental term commenced on a second property owned by the company, and so the carrying value at the date of transfer of £338,195 was reclassified to investment property. The fair value of this property was estimated by the directors as at 31 December 2025 to be £712,500, arrived at on the basis of rentals received in respect of this property.

The fair value of the third investment property is £250,000, arrived at on the basis of a valuation carried out during 2022 by independent valuers and chartered surveyors, Countrywide Properties Limited. The professional valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. An impairment charge of £13,583 was noted in respect of this property.

The fair value of the fourth investment property is £609,532, being held at the cost paid to acquire the property during the 2024 financial year.

The fair value of the final investment property is £2,000,000. The fair value of this property was estimated by the directors as at 31 December 2025, arrived at on the basis of its likely realisable value. An impairment charge of £500,000 was noted in respect of this property.

In the opinion of the directors, other than those noted above, there has been no material change in the value of any investment property as at the balance sheet date.

During the year, in December 2025, the decision was made to cease trading at one of the company's subsidiaries, B&M Concrete Products Limited.

Details of the company's subsidiaries at 31 December 2025 are as follows:

Details of associates at 31 December 2025 are as follows:

There were no significant differences between the replacement costs and the values above except for pallets, which have been expensed over 4 to 8 years on a straight line basis and for mould stocks, which have been expensed over 1 to 6 years on a straight line basis.

A loan in the sum of £3,000,000 was taken out on 22 December 2021. This loan is repayable by quarterly instalments of £75,000, with a final instalment on 22 December 2031. The loan bears interest at 2% pa over the Sterling Relevant Reference Rate. As at 31 December 2025 a sum of £Nil (2024: £893,103) remained outstanding.

A further loan in the sum of £2,571,428 was taken out on 29 February 2024. This loan is repayable on 28 February 2029 The loan bears interest at 6.14% pa until 28 February 2027, and then at 1.75% pa over the Base Rate. As at 31 December 2025 a sum of £2,557,441 (2024: £2,555,004) remained outstanding.

Finally, a loan in the sum of £1,028,572 was taken out on 29 February 2024. This loan is repayable on 28 February 2029 The loan bears interest at 6.12% pa until 28 February 2027, and then at 1.75% pa over the Base Rate. As at 31 December 2025 a sum of £Nil (2024: £1,026,472) remained outstanding.

The Funded Unapproved Retirement Benefits Scheme (FURBS) loan is repayable on demand and currently bears interest at 1½% pa. Accrued interest at 31 December 2025 amounted to £719,445 (2024: £700,907) and these sums are included in note 22 under accruals and deferred income.

The bank overdraft facility and loans are secured by fixed and floating charges over the company's assets and mortgages over certain properties.

The hire purchase liabilities are secured on the related assets.

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

The deferred tax on revaluations and investment property relates to the estimated corporation tax on chargeable gains that would arise if the land and buildings were disposed of at the valuations included in the accounts.

Otherwise, except for other timing differences expected to reverse within 12 months, the deferred tax liability set out above is expected to reverse over the life of the qualifying assets and relates to accelerated capital allowances that are expected to mature within the same period.

The Group operates four money purchase (defined contribution) pension schemes. Contributions payable to these schemes are charged to the profit and loss account in the period to which they relate. These contributions are invested separately from the Group's assets.

At the year end, £39,459 (2024: £33,774) was payable to the pension scheme. This amount is included within other creditors.

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

At the reporting end date the group had contracted with tenants for the following minimum lease payments:

Amounts contracted for but not provided in the financial statements:

Subsequent to the balance sheet date, and prior to the approval of these financial statements, on 20 February 2026 B&M Concrete Products Limited closed its trading site and is in the process of ceasing its trade.

As the decision to cease trading was made prior to the balance sheet date in December 2025, an adjustment has been made to the consolidated profit and loss account to show results for the company as a discontinued operation.

As a result, goodwill as at 31 December 2025 relating to B&M Concrete Products totalling £15,680 has been impaired in full, with the impairment expense reflected as an exceptional cost per note 3.

The directors are currently assessing the impact of the cessation on the future operations and financial position of the group.

It was further identified that post year end to the date of sign off, payments of £290,000 were made to Pulse Padel Group Limited, a company over which a director of Castacrete has significant influence.

The remuneration of key management personnel, including directors, is as follows.

The Group has taken advantage of the exemption provided in section 33.1A of Financial Reporting Standard 102, allowing non disclosure of related party transactions for wholly owned subsidiaries.

As at 31 December 2025 there were outstanding balances on unsecured loans from the directors, amounting to £64,181 (2024: £144,934) repayable within one year and included in loans and overdrafts (note 21).

As at 31 December 2025, £Nil (2024: £Nil) was due to the son of a director and is included in other creditors (note 21). Interest at 9% has been charged on the loan. Accrued interest relating to this loan of £1,920 (2024: £1,920) remained outstanding as at the year end and is included in other creditors (note 21).

The parent company occupies two properties owned by two of the parent company's pension schemes. Rent at a commercial rate of £117,180 (2024: £117,180) was paid in the year.

As at 31 December 2025 the parent company owed the Funded Unapproved Retirement Benefits Scheme, of which a director is one of the trustees £1,103,631 (2024: £1,103,631) which is included within loans and overdrafts (note 21). The loan currently bears interest at 1½% pa. £16,554 (2024: £66,023) of interest was charged during 2025 but not paid. The total accrued unpaid interest at 31 December 2025 amounted to £719,445 (2024: £700,970) and is included within accruals (note 21).

Dividends were paid to directors in the year totalling £495 (2024: £990).

During the year, payments totalling £10,833 were made to Pulse Padel (Dartford) Ltd, a company in which T Samllman is also a director. As at 31 December 2025, a total of £Nil (2024: £Nil) was owed to Pulse Padel (Darftford) Ltd.

The ultimate controlling party is Mr T A Smallman, one of the company's directors.

The profit and loss account balance of the company includes the sum of £1,544,735 representing the revaluation reserve of The Alexandra Stone Company Limited as at 31 December 2008, which was realised on the transfer of the freehold property to Castacrete Limited. Accordingly, this element of the company's reserves is not distributable.

The potential tax on the property originally owned by The Alexandra Stone Company Limited amounts to £165,987 (2024: £165,987). This has been deducted from the company's revaluation reserve, which includes valuation surpluses on the revaluation of this property and the company's other operational properties.

The profit and loss balance also includes £420,213 (2024: £805,401), which represents the net of the revaluation surplus on investment properties less the potential tax that would arise on the sale of those properties at their book value.

During the year, £107,852 was transferred from the revaluation reserve to profit and loss in respect of the dispsoal of a revalued property.