REGISTERED NUMBER: 07431863 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026

FOR

PAVE-AWAYS HOLDINGS LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Statement of Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

17

DIRECTORS:

S P Owen

Mrs V L Lawson

REGISTERED OFFICE:

Avenue Mill

Knockin

Oswestry

Shropshire

SY10 8HQ

REGISTERED NUMBER:

07431863 (England and Wales)

AUDITORS:

D.R.E. & Co. (Audit) Limited

7 Lower Brook Street

Oswestry

Shropshire

SY11 2HG

The directors present their strategic report of the company and the group for the year ended 31 March 2026.

REVIEW OF BUSINESS

The Group's core business is the delivery of high-quality construction services across Shropshire, Telford, Cheshire and Mid Wales. During the year, turnover remained in line with the annual budget forecast, whilst profit margins improved, reflecting enhanced operational efficiency and effective cost management. This performance has been supported by the consistent delivery of high-quality workmanship, control of overheads and operating costs, and the continued adoption of sustainable construction practices in collaboration with our established and trusted supply chain.

Sustainability remains central to the Group's operations, reflecting our commitment to delivering positive and lasting benefits to the communities in which we operate. The Directors remain focused on upholding the Group's core values of Safety, Integrity, Teamwork, Excellence and Sustainability. Our hands-on management approach, underpinned by these principles, continues to support strong client relationships and is reflected in the high level of repeat business secured by the Group.

The Group remains fully self-financing, with no reliance on external borrowing or other external finance. This provides a strong financial foundation, supported by a consistently healthy cash position. The Group is well positioned to undertake contracts ranging in value from £250,000 to £10 million across a diverse range of construction sectors.

The Group continues to strengthen relationships with existing clients whilst developing new business relationships and opportunities. Looking ahead to the 2026/2027 financial year, the Group remains in a strong position, supported by a healthy order book of work already secured. Alongside maintaining our established standards of quality and service, we remain focused on identifying and implementing more efficient ways of working to enhance operational performance, manage costs effectively and support the Group's long-term success.

Key performance indicators

2026

2025

% change

Turnover

£16,937,605

£20,860,908

18.8%

Gross profit

£4,452,320

£4,614,476

3.5%

Shareholders' funds

£8,649,844

£7,192,053

20.3%

Gross margin

26.3%

22.1%

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks facing the Group reflect those affecting the construction industry, including market competition, fluctuations in material, fuel and energy prices, supply chain disruption, labour availability, legislative changes, economic uncertainty, and external events such as geopolitical instability and civil unrest. These factors impact project costs profitability, material availability and delivery timescales.

The construction market remains highly competitive, placing continued pressure on contract pricing, profit margins and ability to secure suitable work. The Group manages these risks through careful assessment of upcoming tenders, cost planning and effective contract management, continually monitoring contract performance. The experience and expertise of the Group work force, together with a strong established supply chain enables the Group to consistently deliver high-quality projects within agreed budget and set timescales. The Group also monitors external developments and considers their potential impact on contract pricing, project delivery and operational costs.

Health and safety, environmental compliance, quality and contractual performance remain key priorities. These are supported by hands on management, appropriate site supervision and adherence to relevant legislation and industry standards. The Directors regularly review the principal risks and take appropriate measures to protect profitability, maintain financial stability, fulfil contractual obligations and support the Group's long term sustainability.

ENVIRONMENTAL POLICY

The Group is committed to minimising its environmental impact and complying with all relevant environmental legislation. Our environmental procedures align with our ISO 14001 accreditation and support continual improvement in sustainable construction practices.

The Group has invested in a cloud-based materials, waste and carbon management platform to monitor site materials, waste, utilities and carbon emissions in real time. This supports efficient resource management, improved compliance, and the reduction of waste and carbon emissions.

Our Carbon Reduction Plan and annual Carbon Reduction Report establish clear sustainability objectives and targets, enabling progress to be monitored and improvements identified. Environmental responsibility remains central to our operations, with employees, suppliers and subcontractors encouraged to support our commitment to reducing our environmental impact.

HEALTH, SAFETY AND WELL-BEING

The health, safety and well-being of our workforce and everyone involved in our projects remains the Group's priority. Our full-time Health and Safety Manager ensures safe working practices are maintained, supported by ongoing training, engagement and compliance with relevant legislation. Our safety record over the past year remains excellent, reflecting our continued commitment to maintaining high standards.

We recognise the importance of mental health and well-being alongside physical safety. All employees receive one day of mental health awareness training, and a dedicated Well-being Manager is available as a confidential point of contact for staff seeking support. We also run regular well-being campaigns throughout the year to promote awareness and encourage a positive workplace culture.

The Group offers all employees access to an Employee Assistance Programme, appropriate occupational health medicals and the required level of health surveillance where applicable. Well-being support extends to employees and their families, ensuring advice and assistance are available when needed. We remain committed to continually improving the health, safety and welfare of our workforce.

ON BEHALF OF THE BOARD:

S P Owen - Director

15 October 2026

The directors present their report with the financial statements of the company and the group for the year ended 31 March 2026.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of civil engineering, building and construction work.

DIVIDENDS

Interim dividends were paid as follows:

25/4/25 £6,258.06 per A share and £37,726.27 per B share.

10/12/25 £100,000 per C share.

The directors recommend that no final dividend be voted.

Total distribution of dividends for the year ended 31 March 2026 was £1,071,262.

RESEARCH AND DEVELOPMENT

Pave-Aways Limited remains committed to innovation and continuous improvement through research and development, enhancing operational efficiency and maintaining a competitive position within the construction industry. During the year, the Group continued to utilise the advanced waste management platform invested in during the previous year, enabling improved monitoring of materials, waste and carbon emissions to support more efficient resource use and reduce environmental impact. The Group also continued to explore sustainable construction methods and environmentally responsible materials to improve project sustainability.

Looking ahead, research and development will remain an important part of the Group's strategic objectives. Pave-Aways Limited will continue to embrace sustainable technologies, digital solutions and innovative working practices to improve efficiency, reduce waste and carbon emissions, and deliver long-term environmental and operational benefits.

FUTURE DEVELOPMENTS

The Group enters the 2026/2027 financial year in a strong position, supported by a healthy order book of work already secured. The Group remains focused on building on this position by maintaining strong relationships with existing clients, developing new business opportunities and pursuing sustainable growth across its established operating regions.

The Group will continue to focus on improving operational efficiency, maintaining financial stability and delivering high-quality construction projects within agreed budgets and timescales.

Sustainability will continue to play an important role in the Group's future strategy, with ongoing use of its waste management platform, monitoring of carbon emissions and progress against its Carbon Reduction Plan. The Group will also continue to invest in its workforce by offering continued training and development, promote health, safety and well-being, and explore opportunities to improve working practices, reduce environmental impact and strengthen its long-term position within the construction industry.

DIRECTORS

The director shown below has held office during the whole of the period from 1 April 2025 to the date of this report.

S P Owen

Mrs V L Lawson

GOING CONCERN

These financial statements have been prepared on the going concern basis as the directors expect the group to continue to operate for the foreseeable future.

STREAMLINED ENERGY AND CARBON REPORTING

Greenhouse gas emissions, energy consumption and energy efficiency disclosure is not given as consumption is less than 40,000 kWh of energy.

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). 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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, D.R.E. & Co. (Audit) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

S P Owen - Director

15 October 2026

Opinion

We have audited the financial statements of Pave-Aways Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2026 which comprise the Consolidated Statement of 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 31 March 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 five, 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.

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

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

-we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the client's operating sector;

-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, employment, environmental and health and safety legislation;

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

-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 their knowledge of actual, suspected and alleged fraud; and

-reviewing the client's system notes and internal controls.

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 set out in note 3 were indicative of potential bias;

-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;

-reviewing correspondence with HMRC.

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

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

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

Use of our report

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

Aled Davies FCCA (Senior Statutory Auditor)

for and on behalf of D.R.E. & Co. (Audit) Limited

7 Lower Brook Street

Oswestry

Shropshire

SY11 2HG

15 October 2026

TURNOVER

16,937,605

20,860,908

Cost of sales

(12,485,285

)

(16,246,432

)

GROSS PROFIT

4,452,320

4,614,476

Administrative expenses

(853,830

)

(924,408

)

3,598,490

3,690,068

Other operating income

35,175

39,333

OPERATING PROFIT

5

3,633,665

3,729,401

Interest receivable and similar income

120,908

71,029

3,754,573

3,800,430

Interest payable and similar expenses

6

(15,981

)

-

PROFIT BEFORE TAXATION

3,738,592

3,800,430

Tax on profit

7

(881,304

)

(857,314

)

PROFIT FOR THE FINANCIAL YEAR

2,857,288

2,943,116

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,857,288

2,943,116

Profit attributable to:

Owners of the parent

2,529,053

2,707,292

Non-controlling interests

328,235

235,824

2,857,288

2,943,116

Total comprehensive income attributable to:

Owners of the parent

2,529,053

2,707,292

Non-controlling interests

328,235

235,824

2,857,288

2,943,116

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

869,328

932,944

Investments

12

-

-

869,328

932,944

CURRENT ASSETS

Stocks

13

2,348,226

846,312

Debtors

14

3,493,492

5,107,527

Cash at bank

6,741,907

6,856,045

12,583,625

12,809,884

CREDITORS

Amounts falling due within one year

15

4,608,651

6,409,154

NET CURRENT ASSETS

7,974,974

6,400,730

TOTAL ASSETS LESS CURRENT LIABILITIES

8,844,302

7,333,674

PROVISIONS FOR LIABILITIES

18

93,023

112,325

NET ASSETS

8,751,279

7,221,349

CAPITAL AND RESERVES

Called up share capital

19

46

46

Share premium

20

24,872

24,872

Capital redemption reserve

20

79

79

Retained earnings

20

8,624,847

7,167,056

SHAREHOLDERS' FUNDS

8,649,844

7,192,053

NON-CONTROLLING INTERESTS

101,435

29,296

TOTAL EQUITY

8,751,279

7,221,349

The financial statements were approved by the Board of Directors and authorised for issue on 15 October 2026 and were signed on its behalf by:

S P Owen - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

-

-

Investments

12

2,763,750

2,763,750

2,763,750

2,763,750

CURRENT ASSETS

Stocks

13

2,338,876

836,962

Debtors

14

10

2,257

Cash at bank

46,637

364,787

2,385,523

1,204,006

CREDITORS

Amounts falling due within one year

15

1,610,868

479,575

NET CURRENT ASSETS

774,655

724,431

TOTAL ASSETS LESS CURRENT LIABILITIES

3,538,405

3,488,181

CAPITAL AND RESERVES

Called up share capital

19

46

46

Share premium

20

24,872

24,872

Capital redemption reserve

20

79

79

Retained earnings

20

3,513,408

3,463,184

SHAREHOLDERS' FUNDS

3,538,405

3,488,181

Company's profit for the financial year

1,121,486

1,682,589

The financial statements were approved by the Board of Directors and authorised for issue on 15 October 2026 and were signed on its behalf by:

S P Owen - Director

Called up

share

Retained

Share

capital

earnings

premium

£

£

£

Balance at 1 April 2024

46

5,353,028

24,872

Changes in equity

Dividends

-

(893,264

)

-

Total comprehensive income

-

2,707,292

-

Balance at 31 March 2025

46

7,167,056

24,872

Changes in equity

Dividends

-

(1,071,262

)

-

Total comprehensive income

-

2,529,053

-

Balance at 31 March 2026

46

8,624,847

24,872

Capital

redemption

Non-controlling

Total

reserve

Total

interests

equity

£

£

£

£

Balance at 1 April 2024

79

5,378,025

(43,046

)

5,334,979

Changes in equity

Dividends

-

(893,264

)

(163,482

)

(1,056,746

)

Total comprehensive income

-

2,707,292

235,824

2,943,116

Balance at 31 March 2025

79

7,192,053

29,296

7,221,349

Changes in equity

Dividends

-

(1,071,262

)

(256,095

)

(1,327,357

)

Total comprehensive income

-

2,529,053

328,235

2,857,288

Balance at 31 March 2026

79

8,649,844

101,436

8,751,280

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 April 2024

46

2,673,858

24,872

79

2,698,855

Changes in equity

Dividends

-

(893,263

)

-

-

(893,263

)

Total comprehensive income

-

1,682,589

-

-

1,682,589

Balance at 31 March 2025

46

3,463,184

24,872

79

3,488,181

Changes in equity

Dividends

-

(1,071,262

)

-

-

(1,071,262

)

Total comprehensive income

-

1,121,486

-

-

1,121,486

Balance at 31 March 2026

46

3,513,408

24,872

79

3,538,405

Cash flows from operating activities

Cash generated from operations

1

1,596,239

4,114,573

Interest paid

(15,981

)

-

Tax paid

(494,488

)

(124,800

)

Net cash from operating activities

1,085,770

3,989,773

Cash flows from investing activities

Purchase of tangible fixed assets

(30,658

)

(41,639

)

Sale of tangible fixed assets

37,199

8,468

Interest received

120,908

71,029

Net cash from investing activities

127,449

37,858

Cash flows from financing activities

Amount introduced by directors

-

22,001

Dividend paid to minority interest

(256,095

)

(163,333

)

Equity dividends paid

(1,071,262

)

(893,264

)

Net cash from financing activities

(1,327,357

)

(1,034,596

)

(Decrease)/increase in cash and cash equivalents

(114,138

)

2,993,035

Cash and cash equivalents at beginning of year

2

6,856,045

3,863,010

Cash and cash equivalents at end of year

2

6,741,907

6,856,045

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

31.3.26

31.3.25

£

£

Profit before taxation

3,738,592

3,800,430

Depreciation charges

70,088

85,518

Profit on disposal of fixed assets

(13,013

)

(2,803

)

Finance costs

15,981

-

Finance income

(120,908

)

(71,029

)

3,690,740

3,812,116

(Increase)/decrease in stocks

(1,501,914

)

6,679

Decrease in trade and other debtors

123,824

381,185

Decrease in trade and other creditors

(716,411

)

(85,407

)

Cash generated from operations

1,596,239

4,114,573

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 March 2026

31.3.26

1.4.25

£

£

Cash and cash equivalents

6,741,907

6,856,045

Year ended 31 March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

6,856,045

3,863,010

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.25

Cash flow

At 31.3.26

£

£

£

Net cash

Cash at bank

6,856,045

(114,138

)

6,741,907

6,856,045

(114,138

)

6,741,907

Total

6,856,045

(114,138

)

6,741,907

1.	STATUTORY INFORMATION

Pave-Aways Holdings Ltd is a private company limited by shares, incorporated in the UK and registered in England & Wales. The company's registered number and address can be found on the company information page.

The principal place of business is Avenue Mill, Knockin, Oswestry, Shropshire, SY10 8HQ.

2.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

The financial statements are presented in Sterling (£), rounded to nearest £1.

Going Concern

The financial statements have been prepared under a going concern basis on the directors expectation that the group will continue to operate in the foreseeable future.

Basis of consolidation

The consolidated financial statements present the results of the parent company and those of it's subsidiaries. All consolidated subsidiaries have coterminous financial year ends. Inter group transactions have been eliminated from the financial statements and subsidiary results have been restated, where possible to reflect comparable accounting policies. The financial statements therefore include:

Pave-Aways Holdings Ltd (Parent company)

Pave-Aways Ltd (100% subsidiary - See Note 12)

Significant judgements and estimates

The group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

The group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 14 for the net carrying amount of debtors.

Work in progress and long term contracts are considered significant accounting estimates and their policy is referred to separately within accounting policies.

Turnover

Turnover represents net invoiced work done, excluding value added tax. Sales relating to long term contracts are recognised to its stage of completion. Other sales are recognised at the point of completion of work done.

Goodwill

Negative goodwill resulting from the acquisition of the shares in Pave-Aways Ltd in 2011, was written off to reserves in the first year.