Afan Group Ltd Group accounts (Group and Company)

COMPANY REGISTRATION NUMBER: 12616390

Afan Group Ltd

Financial Statements

31 January 2026

Afan Group Ltd

Financial Statements

Year ended 31 January 2026

Contents	Page

Officers and professional advisers	1

Strategic report	2

Directors' report	4

Independent auditor's report to the members	6

Consolidated statement of income and retained earnings	10

Company statement of income and retained earnings	11

Consolidated statement of financial position	12

Company statement of financial position	13

Consolidated statement of cash flows	14

Notes to the financial statements	15

Afan Group Ltd

Officers and Professional Advisers

The board of directors	Mr A D Williams
	Mrs S Pugh
	Mr R Williams

Company secretary	Mr S K Young

Registered office	Water Street
	Margam
	Neath Port Talbot
	United Kingdom
	SA13 2PA

Auditor	Clements Jones
	Chartered accountants & statutory auditor
	1 Picton Lane
	Swansea
	SA1 4AF

Afan Group Ltd

Strategic Report

Year ended 31 January 2026

Principal activities and business review

The principal activities of the Group during the year were civil engineering, groundworks, landscaping and associated construction services. The Group operates principally in South Wales and provides services to commercial, public sector and private clients. Group turnover for the year was approximately £11.0 million and the Group employed approximately 80 employees. The Group continued to trade satisfactorily during the year, supported by demand for its core services and established relationships with customers and suppliers. The directors continue to focus on the successful delivery of projects, maintaining margins, controlling costs and managing cash flow and working capital. The Group's principal financial key performance indicators are turnover, gross profit, operating profit, cash flow, working capital and debtor collection. These are monitored regularly by the directors through management accounts and project reporting.

Future developments

The Group's strategy is to maintain and develop its position as an established regional civil engineering and landscaping contractor. The directors intend to develop existing customer relationships and selectively pursue new contracts where the expected returns are appropriate having regard to the associated risks and available resources. The directors remain mindful of economic conditions, construction activity, labour availability, material costs and competitive pressures and will continue to manage the business on a controlled and sustainable basis.

Principal risks and uncertainties

The principal risks facing the Group include contract and project risk, construction cost inflation, availability of skilled labour, health and safety, customer concentration, credit and cash-flow risk, economic conditions and supply-chain disruption. These risks are managed through established tendering and contract review procedures, regular monitoring of project performance and costs, cash-flow forecasting, credit control, appropriate health and safety procedures, workforce training and maintaining relationships with a broad range of suppliers, subcontractors and customers.

Employees, environmental and community matters

The Group recognises that its employees are fundamental to its success and seeks to provide appropriate training, development and a safe and inclusive working environment. The Group seeks to minimise the environmental impact of its activities through appropriate waste management, recycling and efficient use of materials, fuel and plant. As a regional employer and contractor, the Group also seeks to support the local economy through the use of local employees, suppliers and subcontractors where commercially appropriate and to minimise disruption to local communities.

Section 172 considerations

The directors have had regard to their duties under section 172 of the Companies Act 2006 when making decisions during the year. In particular, they have considered the long-term consequences of decisions, the interests of employees, relationships with customers and suppliers, the impact of the Group's activities on the environment and local communities, and the importance of maintaining the Group's reputation for quality and reliable service.

Going concern

The directors have considered the Group's financial position, cash-flow forecasts, committed work and expected future trading performance. Having considered these matters and the principal risks facing the Group, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the going concern basis continues to be appropriate in preparing the financial statements.

This report was approved by the board of directors on 15 October 2026 and signed on behalf of the board by:

Mr A D Williams

Director

Registered office:

Water Street

Margam

Neath Port Talbot

United Kingdom

SA13 2PA

Afan Group Ltd

Directors' Report

Year ended 31 January 2026

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

Directors

The directors who served the company during the year were as follows:

Mr A D Williams
Mrs S Pugh
Mr R Williams

Dividends

Particulars of recommended dividends are detailed in note 11 to the financial statements.

Disclosure of information in the strategic report

The Directors, in preparing the strategic report, have complied with s414c of the Companies Act 2006.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and the company and 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 judgments 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.

Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the group and the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the group and the company's auditor is aware of that information.

This report was approved by the board of directors on 15 October 2026 and signed on behalf of the board by:

Mr A D Williams

Director

Registered office:

Water Street

Margam

Neath Port Talbot

United Kingdom

SA13 2PA

Afan Group Ltd

Independent Auditor's Report to the Members of Afan Group Ltd

Year ended 31 January 2026

Opinion

We have audited the financial statements of Afan Group Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2026 which comprise the consolidated statement of income and retained earnings, company statement of income and retained earnings, consolidated statement of financial position, company statement of financial position, consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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's affairs as at 31 January 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; - have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 or 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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept 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 directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Based on our understanding of the company and industry, we identified that the principal risks of noncompliance with laws and regulations related to health and safety, food hygiene, licencing, employment law and UK Companies Act and we considered the extent to which any non-compliance might have a material effect on the financial statements. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to the posting of fraudulent journal entries and transactions or bias in estimates. Audit procedures performed by the engagement team included: 1) Enquiries with management (including correspondence with legal counsel) regarding their consideration of known or suspected instances of non-compliance with laws and regulation and fraud; 2) Understood the company's policies and controls in relation to the company's compliance with relevant licence requirements; 3) Identifying and testing journal entries, in particular any journal entries posted with certain unusual account combinations, or with unusual descriptions, and 4) Challenging assumptions and judgements made by management in respect of critical accounting judgements and significant accounting estimates; There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through collusion. A further description of our responsibilities for the audit of the financial statements is located on the FRC's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group's internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group's or the parent company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. - Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report

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

Mr Matthew Clements

(Senior Statutory Auditor)

For and on behalf of

Clements Jones

Chartered accountants & statutory auditor

1 Picton Lane

Swansea

SA1 4AF

15 October 2026

Afan Group Ltd

Consolidated Statement of Income and Retained Earnings

Year ended 31 January 2026

		2026	2025
Note		£	£
Turnover	4	11,846,702	11,799,160

Cost of sales	9,993,374	10,447,178
	-------------	-------------
Gross profit	1,853,328	1,351,982

Administrative expenses		1,232,732	1,075,017
		------------	------------
Operating profit	5	620,596	276,965

Other interest receivable and similar income	8	18,187	9,507
Interest payable and similar expenses	9	22,058	24,006
		------------	------------
Profit before taxation		616,725	262,466

Tax on profit	10	161,104	55,772
		---------	---------
Profit for the financial year and total comprehensive income		455,621	206,694
		---------	---------

Dividends paid and payable	11	( 54,000)	( 35,568)

Retained earnings at the start of the year	2,347,383	2,176,257
	------------	------------
Retained earnings at the end of the year	2,749,004	2,347,383
	------------	------------

All the activities of the group are from continuing operations.

Afan Group Ltd

Company Statement of Income and Retained Earnings

Year ended 31 January 2026

		2026	2025
Note		£	£
Profit for the financial year and total comprehensive income		102,200	51,960
Dividends paid and payable	11	( 54,000)	( 35,569)

Retained earnings at the start of the year	38,341	21,950
	---------	--------
Retained earnings at the end of the year	86,541	38,341
	---------	--------

Afan Group Ltd

Consolidated Statement of Financial Position

31 January 2026

	2026	2025
Note	£	£

Fixed assets

Tangible assets	12	936,592	786,281

Current assets

Stocks	14	42,578	48,372
Debtors	15	2,475,070	3,027,799
Cash at bank and in hand		1,556,831	1,032,469
		------------	------------
		4,074,479	4,108,640

Creditors: amounts falling due within one year	16	1,894,090	2,203,441
		------------	------------
Net current assets		2,180,389	1,905,199
		------------	------------
Total assets less current liabilities		3,116,981	2,691,480

Creditors: amounts falling due after more than one year	17	174,964	191,654

Provisions	19	192,713	152,143
		------------	------------
Net assets		2,749,304	2,347,683
		------------	------------

Capital and reserves

Called up share capital	22	578,100	578,100
Other reserves, including the fair value reserve	23	( 577,800)	( 577,800)
Profit and loss account	23	2,749,004	2,347,383
		------------	------------
Shareholders funds		2,749,304	2,347,683
		------------	------------

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.

These financial statements were approved by the board of directors and authorised for issue on 15 October 2026 , and are signed on behalf of the board by:

Mr A D Williams

Director

Company registration number: 12616390

Afan Group Ltd

Company Statement of Financial Position

31 January 2026

	2026	2025
Note	£	£

Fixed assets

Investments	13	578,000	578,000

Current assets

Debtors	15	83,121	56,169
Cash at bank and in hand		10,801	12,600
		--------	--------
		93,922	68,769

Creditors: amounts falling due within one year	16	7,281	30,328
		--------	--------
Net current assets		86,641	38,441
		---------	---------
Total assets less current liabilities		664,641	616,441
		---------	---------

Capital and reserves

Called up share capital	22	578,100	578,100
Profit and loss account	23	86,541	38,341
		---------	---------
Shareholders funds		664,641	616,441
		---------	---------

The profit for the financial year of the parent company was £ 102,200 (2025: £ 51,960 ).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.

These financial statements were approved by the board of directors and authorised for issue on 15 October 2026 , and are signed on behalf of the board by:

Mr A D Williams

Director

Company registration number: 12616390

Afan Group Ltd

Consolidated Statement of Cash Flows

Year ended 31 January 2026

	2026	2025
	£	£

Cash flows from operating activities

Profit for the financial year	455,621	206,694

Adjustments for:
Depreciation of tangible assets	266,821	209,881
Other interest receivable and similar income	( 18,187)	( 9,507)
Interest payable and similar expenses	22,058	24,006
Loss on disposal of tangible assets	38,239	21,289
Tax on profit	161,104	55,772
Accrued expenses/(income)	163,587	( 1,470)

Changes in:
Stocks	5,794	( 11,873)
Trade and other debtors	552,729	( 635,700)
Trade and other creditors	( 602,729)	297,185
	------------	---------
Cash generated from operations	1,045,037	156,277

Interest paid	( 22,058)	( 24,006)
Interest received	18,187	9,507
	------------	---------
Net cash from operating activities	1,041,166	141,778
	------------	---------

Cash flows from investing activities

Purchase of tangible assets	( 630,149)	( 426,421)
Proceeds from sale of tangible assets	174,778	102,634
	------------	---------
Net cash used in investing activities	( 455,371)	( 323,787)
	------------	---------

Cash flows from financing activities

Proceeds from borrowings	( 62,547)	( 101,027)
Payments of finance lease liabilities	55,114	19,934
Dividends paid	( 54,000)	( 35,568)
	------------	---------
Net cash used in financing activities	( 61,433)	( 116,661)
	------------	---------

Net increase/(decrease) in cash and cash equivalents	524,362	( 298,670)
Cash and cash equivalents at beginning of year	1,032,469	1,331,139
	------------	------------
Cash and cash equivalents at end of year	1,556,831	1,032,469
	------------	------------

Afan Group Ltd

Notes to the Financial Statements

Year ended 31 January 2026

1. General information

The company is a private company limited by shares, registered in United Kingdom. The address of the registered office is Water Street, Margam, Neath Port Talbot, SA13 2PA, United Kingdom.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Disclosure exemptions

The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following reduced disclosures available under FRS 102:

(a) Disclosures in respect of each class of share capital have not been presented.

(b) No cash flow statement has been presented for the company.

(c) Disclosures in respect of financial instruments have not been presented.

(d) No disclosure has been given for the aggregate remuneration of key management personnel.

Consolidation

The financial statements consolidate the financial statements of Afan Group Ltd and all of its subsidiary undertakings.

The results of subsidiaries acquired or disposed of during the year are included from or to the date that control passes.

The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Freehold property	-	2% straight line
Plant and machinery	-	25% reducing balance
Fixtures and fittings	-	15% reducing balance
Motor vehicles	-	25% reducing balance

Investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.

Investments in associates

Investments in associates accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses. Investments in associates accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value recognised in other comprehensive income/profit or loss. Where it is impracticable to measure fair value reliably without undue cost or effort, the cost model will be adopted. Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the associate arising before or after the date of acquisition.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Construction contracts

Where the outcome of construction contracts can be reliably estimated, contract revenue and contract costs are recognised by reference to the stage of completion of the contract activity as at the period end. Where the outcome of construction contracts cannot be estimated reliably, revenue is recognised to the extent of contract costs incurred that it is probable will be recoverable, and contract costs are recognised as an expense in the period in which they are incurred. The entity uses the percentage of completion method to determine the amounts to be recognised in the period. The stage of completion is measured by reference to the contract costs incurred up to the end of the reporting period as a percentage of total estimated costs for each contract. Costs incurred for work performed to date do not include costs relating to future activity, such as for materials or prepayments.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Turnover

Turnover arises from:

	2026	2025
	£	£
Construction contracts	11,846,702	11,799,160
	-------------	-------------

The whole of the turnover is attributable to the principal activity of the group wholly undertaken in the United Kingdom.

5. Operating loss

Operating profit or loss is stated after charging/crediting:

	2026	2025
	£	£
Depreciation of tangible assets	266,821	209,881
Loss on disposal of tangible assets	38,239	21,289
Impairment of trade debtors	(57,726)	–
	---------	---------

6. Staff costs

The average number of persons employed by the group during the year, including the directors, amounted to:

	2026	2025
	No.	No.
Administrative staff	5	5
Management staff	4	4
Landscaping and maintenance staff	70	58
	----	----
	79	67
	----	----

The aggregate payroll costs incurred during the year, relating to the above, were:

	2026	2025
	£	£
Wages and salaries	2,828,685	2,738,408
Social security costs	330,223	237,813
Other pension costs	208,680	202,378
	------------	------------
	3,367,588	3,178,599
	------------	------------

7. Directors' remuneration

The directors' aggregate remuneration in respect of qualifying services was:

	2026	2025
	£	£
Remuneration	232,922	160,603
	---------	---------

Remuneration of the highest paid director in respect of qualifying services:

	2026	2025
	£	£
Aggregate remuneration	68,295	66,055
	--------	--------

8. Other interest receivable and similar income

	2026	2025
	£	£
Interest on cash and cash equivalents	18,187	9,507
	--------	-------

9. Interest payable and similar expenses

	2026	2025
	£	£
Interest on banks loans and overdrafts	3,591	8,078
Interest on obligations under finance leases and hire purchase contracts	18,467	15,928
	--------	--------
	22,058	24,006
	--------	--------

10. Tax on profit

Major components of tax expense

	2026	2025
	£	£

Current tax:

UK current tax income	120,534	–

Deferred tax:

Origination and reversal of timing differences	40,570	55,772
	---------	--------
Tax on profit	161,104	55,772
	---------	--------

Reconciliation of tax expense

The tax assessed on the profit on ordinary activities for the year is higher than (2025: lower than) the standard rate of corporation tax in the UK of 25 % (2025: 25 %).

	2026	2025
	£	£
Profit on ordinary activities before taxation	616,725	262,466
	---------	---------
Profit on ordinary activities by rate of tax	154,181	65,617
Effect of expenses not deductible for tax purposes	18,924	( 10,329)
Effect of capital allowances and depreciation	( 2,369)	14,653
Utilisation of tax losses	( 10,082)	( 14,179)
Unused tax losses	450	10
	---------	---------
Tax on profit	161,104	55,772
	---------	---------

11. Dividends

	2026	2025
	£	£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )	54,000	35,569
	--------	--------

12. Tangible assets

Group	Freehold property	Plant and machinery	Fixtures and fittings	Motor vehicles	Total
	£	£	£	£	£
Cost
At 1 February 2025	161,585	649,468	92,749	1,075,171	1,978,973
Additions	26,539	3,256	27,724	572,630	630,149
Disposals	–	–	( 59,392)	( 361,599)	( 420,991)
	---------	---------	--------	------------	------------
At 31 January 2026	188,124	652,724	61,081	1,286,202	2,188,131
	---------	---------	--------	------------	------------
Depreciation
At 1 February 2025	20,909	542,492	47,344	581,947	1,192,692
Charge for the year	5,800	31,745	10,994	218,282	266,821
Disposals	–	–	( 38,868)	( 169,106)	( 207,974)
	---------	---------	--------	------------	------------
At 31 January 2026	26,709	574,237	19,470	631,123	1,251,539
	---------	---------	--------	------------	------------
Carrying amount
At 31 January 2026	161,415	78,487	41,611	655,079	936,592
	---------	---------	--------	------------	------------
At 31 January 2025	140,676	106,976	45,405	493,224	786,281
	---------	---------	--------	------------	------------

The company has no tangible assets.

Finance leases and hire purchase contracts

Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:

Group	Plant and machinery	Motor vehicles	Total
	£	£	£
At 31 January 2026	–	–	–
	----	----	----
At 31 January 2025	24,922	300,074	324,996
	--------	---------	---------

13. Investments

The group has no investments.

Company	Shares in group undertakings
	£
Cost
At 1 February 2025 and 31 January 2026	578,000
	---------
Impairment
At 1 February 2025 and 31 January 2026	–
	---------

Carrying amount
At 1 February 2025 and 31 January 2026	578,000
	---------
At 31 January 2025	578,000
	---------

Subsidiaries, associates and other investments

Details of the investments in which the parent company has an interest of 20% or more are as follows:

	Class of share	Percentage of shares held
Subsidiary undertakings
Afan Landscapes Limited	Ordinary £1 Shares	100
Afan Treescapes Limited	Ordinary £1 Shares	100

The registered address of all subsidiaries is Water Street, Margam, Port Talbot, United Kingdom SA13 2PA.

14. Stocks

	Group		Company
	2026	2025	2026	2025
	£	£	£	£
Raw materials and consumables	42,578	48,372	–	–
	--------	--------	----	----

15. Debtors

	Group		Company
	2026	2025	2026	2025
	£	£	£	£
Trade debtors	2,067,485	2,857,286	–	–
Amounts owed by group undertakings	–	–	83,121	56,169
Amounts owed by customers on construction contracts	193,391	50,552	–	–
Prepayments and accrued income	33,456	29,550	–	–
Other debtors	180,738	90,411	–	–
	------------	------------	--------	--------
	2,475,070	3,027,799	83,121	56,169
	------------	------------	--------	--------

The debtors above include the following amounts falling due after more than one year:

	Group		Company
	2026	2025	2026	2025
	£	£	£	£
Trade debtors	580,172	520,182	–	–
	---------	---------	----	----

16. Creditors: amounts falling due within one year

	Group		Company
	2026	2025	2026	2025
	£	£	£	£
Bank loans and overdrafts	26,667	40,000	–	–
Trade creditors	1,292,186	1,887,184	–	–
Accruals and deferred income	229,586	65,999	–	–
Corporation tax	120,534	–	–	–
Social security and other taxes	74,693	85,521	–	–
Obligations under finance leases and hire purchase contracts	109,668	64,531	–	–
Director loan accounts	7,781	30,328	7,281	30,328
Other creditors	32,975	29,878	–	–
	------------	------------	-------	--------
	1,894,090	2,203,441	7,281	30,328
	------------	------------	-------	--------

17. Creditors: amounts falling due after more than one year

	Group		Company
	2026	2025	2026	2025
	£	£	£	£
Bank loans and overdrafts	–	26,667	–	–
Obligations under finance leases and hire purchase contracts	174,964	164,987	–	–
	---------	---------	----	----
	174,964	191,654	–	–
	---------	---------	----	----

18. Finance leases and hire purchase contracts

The total future minimum lease payments under finance leases and hire purchase contracts are as follows:

	Group		Company
	2026	2025	2026	2025
	£	£	£	£
Not later than 1 year	109,668	64,531	–	–
Later than 1 year and not later than 5 years	174,964	164,987	–	–
	---------	---------	----	----
	284,632	229,518	–	–
	---------	---------	----	----

19. Provisions

Group	Deferred tax (note 20)
	£
At 1 February 2025	152,143
Additions	40,570
	---------
At 31 January 2026	192,713
	---------

The company does not have any provisions.

20. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	Group		Company
	2026	2025	2026	2025
	£	£	£	£
Included in provisions (note 19)	192,713	152,143	–	–
	---------	---------	----	----

The deferred tax account consists of the tax effect of timing differences in respect of:

	Group		Company
	2026	2025	2026	2025
	£	£	£	£
Accelerated capital allowances	192,713	152,143	–	–
	---------	---------	----	----

21. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 208,680 (2025: £ 202,378 ).

22. Called up share capital

Issued, called up and fully paid

	2026		2025
	No.	£	No.	£
Ordinary Shares shares of £ 1 each	578,100	578,100	578,100	578,100
	---------	---------	---------	---------

23. Reserves

Profit and loss account - This reserve records retained earnings and accumulated losses. Other Reserves - This reserve records reserves generated on merger of the group.