REGISTERED NUMBER: 12939666 (England and Wales)

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 30 April 2026

for

RJ Lifts Group Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Profit and Loss Account

10

Consolidated Other Comprehensive Income

11

Consolidated Balance Sheet

12

Company Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Company Statement of Changes in Equity

15

Consolidated Cash Flow Statement

16

Notes to the Consolidated Cash Flow Statement

17

Notes to the Consolidated Financial Statements

18

DIRECTORS:

Mr Richard Skelson

Mr Gareth Williams

Mr Stuart Davies

REGISTERED OFFICE:

Unit 1 Galveston Grove

Oldfield Business Park

Stoke-on-Trent

Staffordshire

ST4 3PE

REGISTERED NUMBER:

12939666 (England and Wales)

AUDITORS:

Thompson Wright (Audit) Limited

Chartered Accountants

and Statutory Auditors

Ebenezer House

Ryecroft

Newcastle under Lyme

Staffordshire

ST5 2BE

The directors present their strategic report of the company and the group for the year ended 30 April 2026.

REVIEW OF BUSINESS

As at the consolidated balance sheet date of 30th April 2026, the company had net assets of £172k which increased from £29k in 2025.

The company continues to grow from strength to strength with turnover increasing from £33.93m in 2025 to £36.76m in 2026, which is an increase of 8.34%.

The directors monitor the performance of the group through monthly management accounts together with the monitoring of bank balances and the ability to meet future liabilities.

Key performance indicators are gross profit, debtor days, creditor days, operating profit and EBITDA.

2026

2025

- Gross profit margin %

26.35%

28.25%

- Debtor days

68 days

74 days

- Creditor days

62 days

66 days

- Operating profit margin %

6.03%

5.79%

- EBITDA £

2,283k

2,086k

The directors recognise the need to continue investing in staff, motor vehicles, internal systems and controls. The directors believe that this continued investment in staff and systems will significantly improve the group's performance and profitability.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors have identified the key risks faced by the group to be market risk, financial risk, credit risk and exchange rate risk.

The group has continued good relationships with customers, suppliers, bank facility providers, and its loyal and stable workforce.

Those factors considered, the directors feel that they are able to continue to minimise any risk and uncertainties to the group moving forward.

The directors are constantly monitoring both the quality and price of the products it acquires and the range of goods and services it supplies, to minimise the market risk.

The group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs.

The group's policy throughout the year has been to monitor and manage its bank funds in the context of its trading activity and avoid incurring unnecessary facility interest, whilst also funding the repayment of hire purchase obligations and other funding obligations.

The principal credit risk arises from its trade debtors. In order to manage credit risk, the directors set limits for its customers based on a combination of payment history and third party credit references. Credit limits are reviewed by the credit controller on a regular basis in conjunction with debt ageing and collection history. During the year, credit risk exposure was spread over a range of customers.

Looking to the future, the directors want to maintain appropriate investment levels in the group to maintain and secure the group's position in the market. The directors closely monitor the market place to ensure that the group can deliver the best products and services at the best prices.

FUTURE DEVELOPMENTS

The directors are keen to expand the core business, through organic sustainable growth, supply chain partnerships, and through strategic acquisition opportunities.

The business has a continued re-investment programme, ensuring staff are well trained and the most up to date equipment is used to enable the group to compete in increasingly competitive markets, which is constantly reviewed in line with business opportunities.

ON BEHALF OF THE BOARD:

Mr Gareth Williams - Director

8 October 2026

The directors present their report with the financial statements of the company and the group for the year ended 30 April 2026.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of lift servicing, installations and repairs.

DIVIDENDS

No dividends will be distributed for the year ended 30 April 2026.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 May 2025 to the date of this report.

Mr Richard Skelson

Mr Gareth Williams

Mr Stuart Davies

Other changes in directors holding office are as follows:

Mr Warren Harley ceased to be a director after 30 April 2026 but prior to the date of this report.

DISCLOSURE IN THE STRATEGIC REPORT

Future developments and principal risks and uncertainties are disclosed in the strategic report.

The company has chosen in accordance with section 414(c) of the Companies Act 2006 (Strategic and Directors Report) Regulations 2013 to set out in the company's Strategic Report information required by schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulations 2008.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), 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 the group 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;

-	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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Thompson Wright (Audit) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr Gareth Williams - Director

8 October 2026

Opinion

We have audited the financial statements of RJ Lifts Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2026 which comprise the Consolidated Profit and Loss Account, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 30 April 2026 and of the group's 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 group 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

-	adequate accounting records have not been kept 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.

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

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

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

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

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

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

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

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

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

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

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

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

- tested journal entries to identify unusual transactions;

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

- investigated the rationale behind significant or unusual transactions.

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

- agreeing financial statement disclosures to underlying supporting documentation;

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

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

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

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

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

Use of our report

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

Jeremy Bostock BA(Hons) BFP FCA (Senior Statutory Auditor)

for and on behalf of Thompson Wright (Audit) Limited

Chartered Accountants

and Statutory Auditors

Ebenezer House

Ryecroft

Newcastle under Lyme

Staffordshire

ST5 2BE

8 October 2026

TURNOVER

3

36,763,008

33,934,548

Cost of sales

27,077,495

24,347,434

GROSS PROFIT

9,685,513

9,587,114

Administrative expenses

7,468,489

7,622,028

OPERATING PROFIT

5

2,217,024

1,965,086

Interest payable and similar expenses

7

86,294

130,540

PROFIT BEFORE TAXATION

2,130,730

1,834,546

Tax on profit

8

566,746

443,749

PROFIT FOR THE FINANCIAL YEAR

1,563,984

1,390,797

Profit attributable to:

Owners of the parent

1,563,984

1,390,797

PROFIT FOR THE YEAR

1,563,984

1,390,797

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,563,984

1,390,797

Total comprehensive income attributable to:

Owners of the parent

1,563,984

1,390,797

FIXED ASSETS

Tangible assets

10

336,715

447,330

CURRENT ASSETS

Stocks

11

728,145

607,084

Debtors

12

7,722,343

8,269,460

Cash at bank

818,495

282,681

9,268,983

9,159,225

CREDITORS

Amounts falling due within one year

13

9,372,497

9,478,203

NET CURRENT LIABILITIES

(103,514

)

(318,978

)

TOTAL ASSETS LESS CURRENT LIABILITIES

233,201

128,352

PROVISIONS FOR LIABILITIES

15

80,305

95,212

NET ASSETS

152,896

33,140

CAPITAL AND RESERVES

Called up share capital

16

100

100

Retained earnings

17

152,796

33,040

SHAREHOLDERS' FUNDS

152,896

33,140

The financial statements were approved by the Board of Directors and authorised for issue on 8 October 2026 and were signed on its behalf by:

Mr Gareth Williams - Director

FIXED ASSETS

Tangible assets

10

336,713

447,330

CURRENT ASSETS

Stocks

11

728,145

607,084

Debtors

12

7,722,343

8,269,460

Cash at bank

818,495

282,681

9,268,983

9,159,225

CREDITORS

Amounts falling due within one year

13

9,376,605

9,482,312

NET CURRENT LIABILITIES

(107,622

)

(323,087

)

TOTAL ASSETS LESS CURRENT LIABILITIES

229,091

124,243

PROVISIONS FOR LIABILITIES

15

80,305

95,212

NET ASSETS

148,786

29,031

CAPITAL AND RESERVES

Called up share capital

16

100

100

Retained earnings

17

148,686

28,931

SHAREHOLDERS' FUNDS

148,786

29,031

Company's profit for the financial year

1,563,983

1,390,798

The financial statements were approved by the Board of Directors and authorised for issue on 8 October 2026 and were signed on its behalf by:

Mr Gareth Williams - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 May 2024

100

424,785

424,885

Changes in equity

Total comprehensive income

-

1,390,797

1,390,797

Contributions to Trust

-

(1,782,542

)

(1,782,542

)

Balance at 30 April 2025

100

33,040

33,140

Changes in equity

Total comprehensive income

-

1,563,984

1,563,984

Contributions to Trust

-

(1,444,228

)

(1,444,228

)

Balance at 30 April 2026

100

152,796

152,896

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 May 2024

100

420,675

420,775

Changes in equity

Total comprehensive income

-

1,390,798

1,390,798

Contributions to Trust

-

(1,782,542

)

(1,782,542

)

Balance at 30 April 2025

100

28,931

29,031

Changes in equity

Total comprehensive income

-

1,563,983

1,563,983

Contributions to Trust

-

(1,444,228

)

(1,444,228

)

Balance at 30 April 2026

100

148,686

148,786

Cash flows from operating activities

Cash generated from operations

1

2,693,520

370,121

Interest paid

(59,897

)

(78,896

)

Tax paid

(659,163

)

(774,209

)

Net cash from operating activities

1,974,460

(482,984

)

Cash flows from investing activities

Purchase of tangible fixed assets

(27,518

)

(87,439

)

Sale of tangible fixed assets

33,100

77,000

Net cash from investing activities

5,582

(10,439

)

Cash flows from financing activities

Contributions to trust

(1,444,228

)

(1,782,542

)

Net cash from financing activities

(1,444,228

)

(1,782,542

)

Increase/(decrease) in cash and cash equivalents

535,814

(2,275,965

)

Cash and cash equivalents at beginning of year

2

282,681

2,558,646

Cash and cash equivalents at end of year

2

818,495

282,681

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

2026

2025

£

£

Profit before taxation

2,130,730

1,834,546

Depreciation charges

85,405

129,174

Loss on disposal of fixed assets

19,628

6,422

Finance costs

86,294

130,540

2,322,057

2,100,682

Increase in stocks

(121,061

)

(263,472

)

Decrease/(increase) in trade and other debtors

547,117

(2,009,308

)

(Decrease)/increase in trade and other creditors

(54,593

)

542,219

Cash generated from operations

2,693,520

370,121

2.	CASH AND CASH EQUIVALENTS

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

Year ended 30 April 2026

30.4.26

1.5.25

£

£

Cash and cash equivalents

818,495

282,681

Year ended 30 April 2025

30.4.25

1.5.24

£

£

Cash and cash equivalents

282,681

2,558,646

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.5.25

Cash flow

At 30.4.26

£

£

£

Net cash

Cash at bank

282,681

535,814

818,495

282,681

535,814

818,495

Total

282,681

535,814

818,495

1.	STATUTORY INFORMATION

RJ Lifts Group Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Going Concern

On 20 September 2022, the shares in the company were acquired by an employee ownership trust (EOT) for the benefit of the employees of the group. The trust borrowed monies to facilitate the acquisition, being bank loans and loan notes to the vendor.

The bank loans and loan notes are cross guaranteed by the group (refer to notes 18 and 19) via a debenture.

The bank has given their support to the group, as a key stakeholder to the business, to ensure they will provide ongoing financial support until the end of the facility term. The directors are currently exploring the renewal of the facility, with the facility term ending in September 2027, and have received positive feedback from both potential new lenders and the incumbent lender on the probability of refinancing the business at that point.

Given the above circumstances, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future, being the 12 month period from the date of these accounts being approved, therefore the financial statements have been prepared on a going concern basis.

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiary ("the Group") as if they form a single entity.

Subsidiary is consolidated from the date of their acquisition, being the date on which the Group obtains control and continue to be consolidated until the date that such control ceases.

Subsidiary is included in the consolidated financial statements on the acquisition basis whilst associates are included using the equity method.

The group accounts consolidate the accounts of the group and all its subsidiaries at 30 April on an acquisition basis. All companies have coterminous year ends. All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation.

Related party exemption

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

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Critical accounting judgements and key sources of estimation uncertainty

The critical judgments that the directors have made in the process of applying the group's accounting policies and key sources of estimation uncertainty that have the most significant effect on the amounts recognised in the statutory financial statements are discussed below.

Key judgements

Key sources of estimation uncertainty

The key assumptions concerning the future, and other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Turnover

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

Revenue is recognised as the company becomes entitled to consideration for the goods and services supplied.

Profit is recognised on contracts, if the final outcome can be assessed with reasonable certainty, by including in the profit and loss account turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs to date bear to total expected costs for that contract.

Turnover is attributable to the principal activity of the company which is carried out entirely within the United Kingdom.

Recoverability of trade debtors

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

Tangible fixed assets

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

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

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

Assessing indicators of impairment

In assessing whether there have been any indicators of impairment 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 indicators of impairments to fixed assets identified during the current financial year. There has been an impairment of the investment and associated goodwill during the current financial year.

Stocks

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

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Financial instruments

The group has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments.

(i) Financial assets

Basic financial assets, including trade and other debtors, and cash and bank balances are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

(ii) Financial liabilities

Basic financial liabilities, including trade and other creditors and loans from fellow group companies, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. 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. Trade creditors are classified as current liabilities if payment is due within one year or less. If not, they are presented as creditors due after more than one year. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Hire purchase and leasing commitments

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

Pension costs and other post-retirement benefits

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

3.

TURNOVER

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

An analysis of turnover by class of business is given below:

2026

2025

£

£

Breakdowns/Maintenance

14,388,858

12,101,800

Major Works

22,374,150

21,832,748

36,763,008

33,934,548

4.	EMPLOYEES AND DIRECTORS

2026

2025

£

£

Wages and salaries

13,259,332

12,304,837

Social security costs

1,887,081

1,396,038

Other pension costs

483,688

726,678

15,630,101

14,427,553

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

2026

2025

Directors

4

5

Administration

59

90

Engineers

187

179

250

244

2026

2025

£

£

Directors' remuneration

289,058

299,227

Directors' pension contributions to money purchase schemes

192,587

243,563

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

Money purchase schemes

3

4

Information regarding the highest paid director is as follows:

2026

2025

£

£

Emoluments etc

97,775

89,422

Pension contributions to money purchase schemes

100,240

117,990