REGISTERED NUMBER: 03963919 (England and Wales)

ACORN PARTITIONS & STORAGE SYSTEMS

LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2026

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

6

Income Statement

9

Other Comprehensive Income

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Statement of Cash Flows

14

Notes to the Financial Statements

15

DIRECTORS:

L C Barrass

S Marsland

H R Stockdale

R A Mycroft

S J Wall

REGISTERED OFFICE:

Kingsley Road

Lincoln

Lincolnshire

LN6 3TA

REGISTERED NUMBER:

03963919 (England and Wales)

SENIOR STATUTORY AUDITOR:

Tara Bellamy FCA

AUDITORS:

Duncan & Toplis Audit Limited, Statutory Auditor

4 Henley Way

Doddington Road

Lincoln

Lincolnshire

LN6 3QR

BANKERS:

HSBC Bank Plc

221 High Street

Lincoln

Lincolnshire

LN1 1TS

The directors present their strategic report for the year ended 31 January 2026.

REVIEW OF BUSINESS

Principal Activities

Acorn Partitions & Storage Systems Limited specialises in the design, supply and installation of interior fit-out solutions and associated construction services across a broad range of sectors. The Company delivers projects throughout the United Kingdom for both public and private sector clients.

Business Review

The Company delivered another strong financial performance during the year despite continued economic uncertainty and ongoing pressures within the construction and fit-out sector. Turnover for the year was £23.6 million (2025: £24.0 million), representing a marginal reduction of 1.6% compared with the prior year. Despite this, profitability improved significantly due to effective project selection, disciplined contract management and improved gross margins.

Gross profit increased to £5.6 million (2025: £4.8 million), with gross profit margin improving from 20.2% to 23.8%. Profit before taxation increased by 29.8% to £2.35 million (2025: £1.81 million), demonstrating the Company's ability to maintain pricing discipline and successfully target projects aligned to its specialist expertise.

The Directors remain committed to a strategy focused on sustainable profitability rather than volume-led growth. During the year the Company continued to prioritise projects that offered appropriate risk adjusted returns while maintaining its reputation for quality, reliability and customer service. This approach has resulted in a strong level of customer satisfaction and repeat business from established clients.

During the year the wider Group underwent a management buyout, resulting in the establishment of a new holding company structure. The transaction had no direct impact on the Company's day-to-day operations, customers or employees.

Financial Position

The Company maintains a strong balance sheet and liquidity position. Net assets increased to £8.6 million at 31 January 2026 (2025: £7.9 million), reflecting the retained profit generated during the year. Cash balances remained robust at £4.1 million, providing significant liquidity to support ongoing operations and future growth opportunities.

Employees

The Company's employees remain important to its success. The Directors continued to invest in the recruitment and development of both experienced industry professionals and apprentices, ensuring the Company maintains the technical capability, operational expertise and succession planning necessary to support future growth.

The Directors recognise that attracting, developing and retaining skilled employees is essential within a competitive labour market. Ongoing investment in training, professional development and health and safety remains a key priority.

Key Performance Indicators

The Directors monitor a range of financial and operational performance measures to assess progress against strategic objectives, including:

KPI

2026

2025

Turnover

£23.6m

£24.0m

Gross profit margin

23.8%

20.2%

Operating profit

£2.35m

£1.76m

Profit before tax margin

9.9%

7.5%

Cash balances

£4.1m

£4.7m

Net assets

£8.6m

£7.9m

These indicators demonstrate improved profitability and continue to demonstrate financial resilience despite a challenging market environment.

Principal Risks and Uncertainties

The Directors recognise that the successful delivery of the Company's strategy requires effective management of risk. The principal risks and uncertainties facing the business are outlined below.

Market and Economic Risk

Demand for fit-out and refurbishment projects may be affected by changes in economic conditions, customer investment decisions and wider construction sector activity. A reduction in business confidence may impact the timing and value of future projects.

Mitigation includes maintaining a diversified customer base, operating across a range of sectors and maintaining a healthy pipeline of opportunities.

Customer Credit Risk

The Company is exposed to the risk of delayed payment or default by customers.

Management mitigates this risk through credit assessments, ongoing monitoring of debtor balances, contractual protections and, where appropriate, securing deposits or advance payments.

Supply Chain Risk

The construction industry continues to experience pressures relating to subcontractor availability, material costs and supplier resilience.

The Company actively develops relationships with multiple suppliers and subcontractors, undertakes financial due diligence on key subcontractors and maintains ongoing communication throughout project delivery.

Liquidity Risk

The Company requires sufficient working capital to fund project delivery and meet operational commitments.

This risk is mitigated through careful cash flow forecasting, proactive working capital management and the maintenance of substantial cash reserves.

Health and Safety Risk

As a contractor operating within the construction sector, the Company must maintain high standards of health and safety performance.

The Company operates established health and safety procedures, regular training programmes and ongoing monitoring arrangements. SafeContractor and CHAS accreditations provide independent assurance that appropriate standards are maintained.

Future Outlook

The Directors enter the new financial year with confidence. The Company has a strong order book, a healthy pipeline of opportunities and a diverse customer base. Whilst economic uncertainty remains across certain sectors, the Board believes the Company's financial strength, reputation for quality delivery and experienced management team position it well for continued sustainable growth.

ON BEHALF OF THE BOARD:

R A Mycroft - Director

28 October 2026

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of interior fit out specialists.

DIVIDENDS

An interim dividend of £1,000,000 was paid on 2 March 2025.

DIRECTORS

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

L C Barrass

S Marsland

H R Stockdale

R A Mycroft

S J Wall

Other changes in directors holding office are as follows:

D P Crookes - resigned 20 March 2025

POLITICAL DONATIONS AND EXPENDITURE

The donation costs totalled £4,517 (2025: £6,226), they are not political donations.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he 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 company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

R A Mycroft - Director

28 October 2026

Opinion

We have audited the financial statements of Acorn Partitions & Storage Systems Limited (the 'company') for the year ended 31 January 2026 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 January 2026 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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

We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit.

The potential impact of different laws and regulations varies considerably. Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management incentives and opportunities for fraudulent manipulation of the financial statements, (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimate and judgemental areas of the financial statements such as depreciation of tangible fixed asset, calculations around amounts recoverable on contracts and accrued project costs, as well as the risk of inappropriate journal entries to increase reported profitability. Audit procedures performed by the engagement team included the identification and testing of material and unusual journal entries and challenging management on key accounting estimates, assumptions and judgements made in preparation of the financial statements. We carried out detailed substantive tests on accounting estimates, including reviewing the methods used by management to make those estimates, re-performing the calculation, and reviewing the outcome of prior year estimates.

Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified compliance with the Health and Safety regulations as most likely to have such an effect.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection. We enquired with management and inspected health and safety reports from visits in the year. The company is accredited with a CHAS certification, which is primarily for the construction industry and allows APSS to give customers additional assurance over the health and safety standards they follow. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls.

We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

Tara Bellamy FCA (Senior Statutory Auditor)

for and on behalf of Duncan & Toplis Audit Limited, Statutory Auditor

4 Henley Way

Doddington Road

Lincoln

Lincolnshire

LN6 3QR

29 October 2026

TURNOVER

23,585,580

23,973,161

Cost of sales

17,983,928

19,132,646

GROSS PROFIT

5,601,652

4,840,515

Administrative expenses

3,271,115

3,092,024

2,330,537

1,748,491

Other operating income

15,951

11,863

OPERATING PROFIT

4

2,346,488

1,760,354

Interest receivable and similar income

5

6,305

57,540

2,352,793

1,817,894

Interest payable and similar expenses

6

7,705

10,603

PROFIT BEFORE TAXATION

2,345,088

1,807,291

Tax on profit

7

579,849

467,102

PROFIT FOR THE FINANCIAL YEAR

1,765,239

1,340,189

PROFIT FOR THE YEAR

1,765,239

1,340,189

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,765,239

1,340,189

FIXED ASSETS

Intangible assets

9

17,708

14,880

Tangible assets

10

320,853

406,875

Investments

11

33

33

338,594

421,788

CURRENT ASSETS

Stocks

12

51,735

71,070

Debtors

13

8,549,431

6,890,941

Cash at bank and in hand

4,090,090

4,733,844

12,691,256

11,695,855

CREDITORS

Amounts falling due within one year

14

4,361,373

4,193,626

NET CURRENT ASSETS

8,329,883

7,502,229

TOTAL ASSETS LESS CURRENT LIABILITIES

8,668,477

7,924,017

PROVISIONS FOR LIABILITIES

17

48,741

69,520

NET ASSETS

8,619,736

7,854,497

CAPITAL AND RESERVES

Called up share capital

18

10,909

10,909

Share premium

19

18,797

18,797

Retained earnings

19

8,590,030

7,824,791

SHAREHOLDERS' FUNDS

8,619,736

7,854,497

The financial statements were approved for issue by the Board of Directors and authorised for issue on 28 October 2026 and were signed on its behalf by:

R A Mycroft - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 February 2024

10,909

8,972,102

18,797

9,001,808

Changes in equity

Dividends

-

(2,487,500

)

-

(2,487,500

)

Total comprehensive income

-

1,340,189

-

1,340,189

Balance at 31 January 2025

10,909

7,824,791

18,797

7,854,497

Changes in equity

Dividends

-

(1,000,000

)

-

(1,000,000

)

Total comprehensive income

-

1,765,239

-

1,765,239

Balance at 31 January 2026

10,909

8,590,030

18,797

8,619,736

Cash flows from operating activities

Cash generated from operations

1

(78,305

)

2,734,650

Interest paid

(7,705

)

-

Tax paid

(522,972

)

(454,750

)

Taxation refund

-

4,199

Net cash from operating activities

(608,982

)

2,284,099

Cash flows from investing activities

Purchase of intangible fixed assets

(5,000

)

(10,000

)

Purchase of tangible fixed assets

(44,485

)

(108,486

)

Sale of tangible fixed assets

8,408

6,346

Interest received

6,305

57,540

Net cash from investing activities

(34,772

)

(54,600

)

Cash flows from financing activities

Amount withdrawn by directors

-

(7,500

)

Equity dividends paid

-

(487,500

)

Net cash from financing activities

-

(495,000

)

(Decrease)/increase in cash and cash equivalents

(643,754

)

1,734,499

Cash and cash equivalents at beginning of year

2

4,733,844

2,999,345

Cash and cash equivalents at end of year

2

4,090,090

4,733,844

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

2026

2025

£

£

Profit before taxation

2,345,088

1,807,291

Depreciation charges

121,807

120,379

Loss/(profit) on disposal of fixed assets

2,464

(1,877

)

Finance costs

7,705

10,603

Finance income

(6,305

)

(57,540

)

2,470,759

1,878,856

Decrease in stocks

19,335

95,401

(Increase)/decrease in trade and other debtors

(2,658,490

)

2,148,412

Increase/(decrease) in trade and other creditors

90,091

(1,388,019

)

Cash generated from operations

(78,305

)

2,734,650

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 January 2026

31.1.26

1.2.25

£

£

Cash and cash equivalents

4,090,090

4,733,844

Year ended 31 January 2025

31.1.25

1.2.24

£

£

Cash and cash equivalents

4,733,844

2,999,345

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.2.25

Cash flow

At 31.1.26

£

£

£

Net cash

Cash at bank and in hand

4,733,844

(643,754

)

4,090,090

4,733,844

(643,754

)

4,090,090

Total

4,733,844

(643,754

)

4,090,090

1.	STATUTORY INFORMATION

Acorn Partitions & Storage Systems Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Significant judgements and estimates

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

The estimates and underlying assumptions are reviewed on an ongoing basis and are covered within the accounting policies:

(i) The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 10 for the carrying amount of the property plant and equipment, and accounting policy note for the usual economic lives of each class of assets.

(ii) The company 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, ageing profile of debtors and historical experience. See note 13 for the net carrying amount of the debtors and associated impairment provision.

(iii) The company makes an estimate for accrued project costs at the year end date, these estimates are determined based on a number of factors such as the stage completion of the projects, the expected margin on the projects and the historical performance of similar projects.

Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects.

Turnover

Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows:

Rendering of services

When the outcome of a transaction can be estimated reliably, turnover from interior fitting is recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to completion of the interior work.

Where the outcome cannot be measured reliably, turnover is recognised only to the extent of the expenses recognised that are recoverable.

In respect of long term contracts and contracts for ongoing services, turnover represents the value of work done in the year, including estimates of amounts not invoiced and is recognised by reference to the stage of completion.

Interest receivable

Interest income is recognised using the effective interest method.

Goodwill

Goodwill, being the amount paid in connection with the aquisition of a business in 2023 and the final clause of a purchase agreement in 2025, is being amortised at 10% on a straight-line basis.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Patents and licenses are being amortised at 10% on a straight-line basis.

Tangible fixed assets

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

Improvements to property

-

10% on cost and 10% on reducing balance

Plant and machinery

-

25% on reducing balance, 20% on cost and 10% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

33% on cost and 20% on cost

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Government grants

The company receives a grant in respect of the Construction Industry Training Board (CITB). This grant is recognised at its amount received when there is reasonable assurance that the company will comply with conditions attaching to them and the grant will be received using the accrual model.

Stocks

Work in progress represents the costs incurred on ongoing projects beyond the stage of completion at the year end date. These costs include direct materials, subcontract costs and labour and are valued at the lower of cost and net realisable value.

Financial instruments

The company has chosen to adopt the Sections 11 and 12 of FRS102 in respect of financial instruments.

Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, unless the arrangement constitute a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

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 the income statement.

Basic financial liabilities, including trade and other 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 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. Accounts 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.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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 the income statement on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the income statement in the period to which they relate.

Provisions and contingencies

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be estimated reliably.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow of resources in respect of any individual item included in the same class of obligations may be small, provided that it is probable that an outflow of resources will be required in settlement of the class of obligations as a whole.

In particular:

(i) Restructuring provisions are recognised when the Company has a detailed, formal plan for the restructuring and has raised a valid expectation in those affected by either starting to implement the plan or announcing its main features to those affected and therefore has a legal or constructive obligation to carry out the restructuring; and

(ii) Provision is not made for future operating losses.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as a finance cost.

Contingent liabilities arise as a result of past events when (i) it is not probable that there will be an outflow of resources or that the amount cannot be reliably measured at the reporting date or (ii) when the existence will be confirmed by the occurrence or non-occurrence of uncertain future events not wholly within the Company’s control. Contingent liabilities are disclosed in the financial statements unless the probability of an outflow of resources is remote.

Contingent assets are not recognised. Contingent assets are disclosed in the financial statements when an inflow of economic benefits is probable.

Investments

Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value through the income statement if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment.

Going concern

The financial statements have been prepared on a going concern basis. In making this assessment, the directors have considered the Company's profitability, cash resources, forecast cash flows and trading outlook. The Company remains profitable, held cash balances of £4.1 million and net assets of £8.6 million at 31 January 2026, and continues to have a strong order book and pipeline of future work. Accordingly, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future and have therefore adopted the going concern basis in preparing these financial statement.

3.	EMPLOYEES AND DIRECTORS

2026

2025

£

£

Wages and salaries

1,960,936

1,960,748

Social security costs

248,681

228,694

Other pension costs

40,625

38,051

2,250,242

2,227,493