Company No:
Contents
| DIRECTORS | T G Brimble |
| C E Penny | |
| R M Penny (Resigned 10 July 2026) | |
| D J Pick | |
| G Worle (Appointed 07 September 2026) |
| SECRETARY | C E Penny |
| REGISTERED OFFICE | Green Street |
| Ston Easton | |
| Bath | |
| BA3 4BY | |
| United Kingdom |
| COMPANY NUMBER | 01195918 (England and Wales) |
| AUDITOR | Old Mill Audit Limited |
| Statutory Auditor | |
| Maltravers House | |
| Petters Way, Yeovil | |
| Somerset | |
| BA20 1SH | |
| United Kingdom |
The directors present their Strategic Report for the financial year ended 31 January 2026.
REVIEW OF THE BUSINESS
2025/26 represented the first year of a two year investment programme in order to significantly expand the waste side of the business particularly the domestic and commercial waste markets.
During the year, £420k was invested in a new waste shredder, alongside £500k of new loan funding drawn down towards the purchase of a state of the art Materials Recovery Facility. A further £2 million of borrowing was completed after the year end to complete the purchase and installation, with the new plant becoming operational in June 2026. This investment significantly increases our waste processing capacity and represents an important step in the continued development of our chain lift skip business.
This was further strengthened in September 2025 by the acquisition of First Call Metals in Westbury further expanding our skip market and depot footprint as well as strengthening our metal recycling capabilities.
Our continued investment in the business over recent years, particularly in our Green Ore Recycling Centre, has also been reflected in the valuation of our land and buildings. Following a professional valuation, the Group recognised a revaluation gain of £1,296k.
Underlying trading performance remained encouraging despite challenging market conditions and significant cost increases including increased employment costs following changes to employer National Insurance contributions, continued labour and materials inflation, and pressure on fuel costs arising from global conflicts.
Against this backdrop, turnover increased by 14.4%, reflecting both the early benefits of our increased focus on the Waste Division and the contribution of several significant contracts within our Groundworks Division.
The groundworks division continues to grow and picked up several significant contracts although were hampered by the particularly wet winter.
Performance in the Demolition division was steady within a very tight market.
KEY PERFORMANCE INDICATORS ('KPIS')
| 2026 | 2025 | ||
| £ | £ | ||
| Turnover £000 | 29,460 | 25,742 | |
| Gross profit margin % | 14 | 19 | |
| Profit before taxation £000 | 230 | 837 | |
| Net assets £000 | 12,715 | 11,787 |
PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties ahead for Pennys include a slower construction sector, further increasing costs in the Budget under a new Prime Minister and increasing fuel costs driven by global conflict.
Approved by the Board of Directors and signed on its behalf by:
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D J Pick
Director |
The directors present their annual report on the affairs of the Company, together with the financial statements and auditors’ report, for the financial year ended 31 January 2026.
PRINCIPAL ACTIVITIES
REVIEW OF THE BUSINESS
Turnover for the financial year amounted to £29,460,426 (2025: £25,741,820). The Company earned a profit after taxation totalling £185,460 (2025: £589,668).
The net current asset position of the Company as at the financial year end amounted to £2,990,546 (2025: net current asset £2,866,076).
The net asset position of the Company as at the financial year end amounted to £12,714,843 (2025: net asset £11,786,939).
DIVIDENDS
The directors paid a dividend of £230,000 in the current financial year (2025: £53,148).
FUTURE DEVELOPMENTS
There are no plans to materially change the Company's activities in the future.
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Company's activities expose it to a number of financial risks including credit risk and liquidity risk.
Credit risk
The Company's principal financial assets are bank balances and cash, trade debtors and other receivables, and investments.
The Company's credit risk is primarily attributable to its trade debtors. The amounts presented in the Balance Sheet are net of allowances for doubtful trade debtors. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.
The Company has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.
Liquidity risk
In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the Company uses a mixture of long-term and short-term debt finance.
Further details regarding liquidity risk can be found in the Statement of accounting policies in the financial statements.
DIRECTORS
The directors, who served during the financial year and to the date of this report except as noted, were as follows:
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(Resigned 10 July 2026) |
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(Appointed 07 September 2026) |
DIRECTORS' INDEMNITIES
AUDITOR
Each of the persons who is a director at the date of approval of this report confirms that:
* So far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware; and
* The director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.
Old Mill Audit Limited have expressed their willingness to continue in office as auditor and appropriate arrangements have been put in place for them to be deemed reappointed as auditors in the absence of an Annual General Meeting.
Approved by the Board of Directors and signed on its behalf by:
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D J Pick
Director |
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 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 financial period.
In preparing these financial statements, the directors are required to:
* Select suitable accounting policies and then apply them consistently;
* Make judgements and accounting estimates that are reasonable and prudent;
* State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
* 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. The directors 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.
We have audited the financial statements of Pennys Group Ltd for the financial year ended 31 January 2026, which comprise the Profit and Loss Account, the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity, the accounting policies, and the related notes 1 to 25, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements of Pennys Group Ltd (the ‘Company’):
* 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 financial year then ended;
* Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"; and
* Have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)). 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 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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of 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 Directors' Report has been prepared in accordance with applicable legal requirements.
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 and 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, 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 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 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.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities 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.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, 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.
We considered the nature of the Company’s industry and its control environment, and reviewed the Company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.
We obtained an understanding of the legal and regulatory framework(s) that the Company operates in, and identified the key laws and regulations that:
* had a direct effect on the determination of material amounts and disclosures in the financial statements; and
* do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company’s ability to operate or to avoid a material penalty.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in accounting estimates are indicative of potential bias, and evaluated the business rationale of significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
* reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
* performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
* enquiring of management, legal counsel concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and
* reading minutes of meetings of those charged with governance
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.
For and on behalf of
Statutory Auditor
Petters Way, Yeovil
Somerset
BA20 1SH
United Kingdom
| Note | 2026 | 2025 | ||
| £ | £ | |||
| Turnover | 3 |
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| Cost of sales | (
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| Gross profit |
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| Administrative expenses | (
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| Other operating income |
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| Operating profit |
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| Interest receivable and similar income | 4 |
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| Interest payable and similar expenses | 4 | (
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| Profit before taxation | 5 |
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| Tax on profit | 9 | (
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| Profit for the financial year |
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| Note | 2026 | 2025 | ||
| £ | £ | |||
| Profit for the financial year |
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| Gain arising on fair value movement of tangible fixed assets excluding investment properties | 12 |
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| Tax relating to components of other comprehensive income | (
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| Other comprehensive income | 972,444 | 0 | ||
| Total comprehensive income |
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| Note | 2026 | 2025 | ||
| £ | £ | |||
| Fixed assets | ||||
| Intangible assets | 11 |
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| Tangible assets | 12 |
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| Investment property | 13 |
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| 14,038,155 | 11,892,702 | |||
| Current assets | ||||
| Stocks | 14 |
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| Debtors | 15 |
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| Cash at bank and in hand |
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| 6,918,354 | 6,397,689 | |||
| Creditors: amounts falling due within one year | 16 | (
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| Net current assets | 2,990,546 | 2,866,076 | ||
| Total assets less current liabilities | 17,028,701 | 14,758,778 | ||
| Creditors: amounts falling due after more than one year | 17 | (
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| Provision for liabilities | 18 | (
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| Net assets | 12,714,843 | 11,786,939 | ||
| Capital and reserves | 20 | |||
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| Share premium account |
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| Revaluation reserve |
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| Profit and loss account |
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| Total shareholders' funds | 12,714,843 | 11,786,939 |
The financial statements of Pennys Group Ltd (registered number:
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D J Pick
Director |
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The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.
Pennys Group Ltd (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is Green Street, Ston Easton, Bath, BA3 4BY, United Kingdom.
The principal activities are set out in the Strategic Report.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain items at fair value, and in accordance with Financial Reporting Standard 102 (FRS 102) applicable in the UK and Republic of Ireland issued by the Financial Reporting Council and the requirements of the Companies Act 2006.
The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.
Pennys Group Ltd meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemptions available to it being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets. Exemptions have been taken in relation to share-based payments, financial instruments, presentation of a Cash Flow Statement and remuneration of key management personnel.
The directors have assessed the Balance Sheet and likely future cash flows at the date of approving these financial statements. The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
Turnover from the sale of goods is recognised when the goods are physically delivered to the customer.
Turnover from the supply of services represents the value of services provided under contracts to the extent that there is a right to consideration and is recorded at the fair value of the consideration received or receivable. Where a contract has only been partially completed at the Balance Sheet date turnover represents the fair value of the service provided to date based on the stage of completion of the contract activity at the Balance Sheet date. Where payments are received from customers in advance of services provided, the amounts are recorded as deferred income and included as part of creditors due within one year.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
Rental income comprises monies received and receivable from investment property.
Short term benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised as an expense when the Company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Defined contribution schemes
For defined contribution schemes the amounts charged to the Profit and Loss Account in respect of pension costs and other post-retirement benefits are the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are shown as either accruals or prepayments in the Balance Sheet.
Other long-term employee benefits are measured at the present value of the benefit obligation at the reporting date.
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the Balance Sheet date where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the Balance Sheet date. Timing differences are differences between the Company's taxable profits and its results as stated in the financial statements that arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that, on the basis of all available evidence, it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date that are expected to apply to the reversal of the timing difference. Deferred tax relating to property, plant and equipment is measured using the revaluation model and investment property is measured using the tax rates and allowances that apply to the sale of the asset.
Where items recognised in the Statement of Comprehensive Income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income.
Current tax assets and liabilities are offset only when there is a legally enforceable right to set off the amounts and the Company intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. Deferred tax assets and liabilities are offset only if: a) the Company has a legally enforceable right to set off current tax assets against current tax liabilities; and b) the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on the Company and the Company intends either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.
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The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.
Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and losses are recognised in profit or loss.
The Company as lessee
The Company as lessor
Assets, other than those measured at fair value, are assessed for indicators of impairment at each Balance Sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Profit and Loss Account as described below.
Financial assets
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
For financial assets carried at amortised cost, the amount of impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
Investment property is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at each reporting date with changes in fair value recognised in profit or loss. Deferred taxation is provided on these gains at the rate expected to apply when the property is sold.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.
Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Financial assets are derecognised when and only when the contractual rights to the cash flows from the financial asset expire or are settled, or the Company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or the Company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
Equity instruments
Equity instruments issued by the Company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Company.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Balance Sheet date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the financial year in which the estimate is revised if the revision affects only that period, or in the financial year of the revision and future periods if the revision affects both current and future periods.
Critical judgements in applying the Company’s accounting policies
The following are the critical judgements, apart from those involving estimations (which are dealt with separately below), that the directors have made in the process of applying the Company’s accounting policies and that have the most significant effect on the amounts recognised in the financial statements.
The fair value of the Company's investment property at 31 January 2026 have been arrived at on the basis of valuations carried out on that date by external valuers having appropriate relevant professional qualifications and recent experience in the location and category of the property being valued. The valuations performed conform to the Valuations Standards of the Royal Institution of Chartered Surveyors and International Valuations Standards (IVS) 2013 were arrived at by reference to market evidence of transaction prices for similar properties.
The comparison approach was used for all investment properties which involved reviewing recent market evidence from the sales of similar properties during the financial year.
The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. Determination of appropriate useful economic lives is a key judgement and 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.
In assessing the recoverability of debtors, amounts falling due within one year, the directors have made the assumption that any impairment resulting from the non-recoverability of the debtors owed to the Group will not be in excess of the bad debt provision that has been put in place. The directors believe that the bad debt provision represents an appropriate estimate and as a result no further provisioning is required. The provision is based on reviews of specific balances, including, historic collectability and the aging of the balance.
Estimates are made and re-evaluated at each reporting date as to the quantum and timing of liabilities arising from complete contracts. The carrying value of amounts recoverable on contract is set out in the notes to these financial statements.
The total income derived from contracts during the year is £15,191,631 (2025 - £14,392,490).
It is noted that there is inherent uncertainty regarding the requirement for land and buildings in the local area and market value is dependent on demand. The carrying value of freehold property held at fair value at the year end is set out in the notes to these financial statements.
Turnover represents the fair value of goods/services provided to customers during the financial year excluding value added tax.
Breakdown by business class
An analysis of the Company's turnover by class of business is set out below.
| 2026 | 2025 | ||
| £ | £ | ||
| Sales of goods (aggregates and soil) | 5,174,520 | 5,044,552 | |
| Sales of services (contract revenue) | 15,191,631 | 14,392,490 | |
| Sale of services (plant hire) | 9,094,275 | 6,304,778 | |
| 29,460,426 | 25,741,820 |
Turnover is wholly attributable to the principal activity of the Company and arises solely within the United Kingdom.
| 2026 | 2025 | ||
| £ | £ | ||
| Interest receivable and similar income |
|
|
|
| Interest payable and similar expenses | (
|
(
|
|
| (103,087) | (100,720) |
Profit before taxation is stated after charging/(crediting):
| 2026 | 2025 | ||
| £ | £ | ||
| Depreciation of tangible fixed assets (note 12) |
|
|
|
| Amortisation of intangible assets (note 11) |
|
|
|
| Operating lease rentals |
|
|
|
| Gain on disposal of fixed assets | (
|
(
|
An analysis of the auditor's remuneration is as follows:
| 2026 | 2025 | ||
| £ | £ | ||
| Fees payable to the Company’s auditor and its associates for the audit of the Company's annual financial statements: | 23,448 | 22,121 | |
| Total audit fees |
|
|
|
Fees payable to Old Mill Audit Limited and its associates for non-audit services to the Company are not required to be disclosed because the consolidated financial statements are required to disclose such fees on a consolidated basis.
| 2026 | 2025 | ||
| Number | Number | ||
| The average monthly number of employees (including directors) was: | |||
| Office and management staff |
|
|
|
| Operators, drivers , fitters and foremen |
|
|
|
|
|
|
Their aggregate remuneration comprised:
| 2026 | 2025 | ||
| £ | £ | ||
| Wages and salaries |
|
|
|
| Social security costs |
|
|
|
| Other retirement benefit costs |
|
|
|
| 6,416,357 | 5,962,818 |
| 2026 | 2025 | ||
| £ | £ | ||
| Directors' emoluments |
|
|
|
| Company contributions to money purchase pension schemes |
|
|
|
| 447,059 | 507,503 |
| 2026 | 2025 | ||
| Number | Number | ||
| Members of a defined benefit pension scheme |
|
|
Remuneration of the highest paid director
| 2026 | 2025 | ||
| £ | £ | ||
| Director's emoluments | 187,121 | 210,242 | |
| Company contributions to money purchase schemes | 0 | 20,990 | |
| 187,121 | 231,232 |
| 2026 | 2025 | ||
| £ | £ | ||
| Current tax on profit | |||
| UK corporation tax | (
|
|
|
| Total current tax | (
|
|
|
| Deferred tax | |||
| Origination and reversal of timing differences |
|
|
|
| Total deferred tax |
|
|
|
| Total tax on profit |
|
|
The tax assessed for the year is lower than (2025: higher than) the standard rate of corporation tax in the UK:
| 2026 | 2025 | ||
| £ | £ | ||
| Profit before taxation | 230,547 | 836,789 | |
| Tax on profit at standard UK corporation tax rate of 25% (2025: 25%) |
|
|
|
| Effects of: | |||
| Expenses not deductible for tax purposes |
|
|
|
| Adjustments in respect of prior years | (
|
|
|
| Fixed asset differences | 24,303 | 28,998 | |
| Losses carried back | 80,684 | (89,686) | |
| Group relief claimed | 1,986 | (1,986) | |
| Chargeable gains/(losses) | 324,148 | 0 | |
| Total tax charge for year | 369,235 | 157,434 |
| 2026 | 2025 | ||
| £ | £ | ||
| Amounts recognised as distributions to equity holders in the financial year: | |||
| Interim dividend for the financial year ended 31 January 2026 of £2,300.00 (2025: £531.48) per ordinary share | 230,000 | 53,148 | |
| Goodwill | Computer software | Total | |||
| £ | £ | £ | |||
| Cost | |||||
| At 01 February 2025 |
|
|
|
||
| Additions |
|
|
|
||
| At 31 January 2026 |
|
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||
| Accumulated amortisation | |||||
| At 01 February 2025 |
|
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||
| Charge for the financial year |
|
|
|
||
| At 31 January 2026 |
|
|
|
||
| Net book value | |||||
| At 31 January 2026 |
|
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||
| At 31 January 2025 |
|
|
|
On 21 July 2025 the company acquired the trade and assets of a similar business. Goodwill acquired of £150,000 has been accounted for above on this transaction.
| Land and buildings |
Plant and machinery | Vehicles | Office equipment | Total | |||||
| £ | £ | £ | £ | £ | |||||
| Cost | |||||||||
| At 01 February 2025 |
|
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|
|
|
||||
| Additions |
|
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|
|
||||
| Disposals |
|
(
|
(
|
|
(
|
||||
| Revaluations |
|
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| At 31 January 2026 |
|
|
|
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|
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| Accumulated depreciation | |||||||||
| At 01 February 2025 |
|
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|
|
|
||||
| Charge for the financial year |
|
|
|
|
|
||||
| Disposals |
|
(
|
(
|
|
(
|
||||
| Reversal of depreciation on revaluations | (
|
|
|
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(
|
||||
| At 31 January 2026 |
|
|
|
|
|
||||
| Net book value | |||||||||
| At 31 January 2026 | 5,852,000 | 4,750,945 | 2,134,865 | 85,910 | 12,823,720 | ||||
| At 31 January 2025 | 4,368,546 | 3,905,041 | 2,474,734 | 125,092 | 10,873,413 |
Revaluation of tangible assets
Freehold property is stated at market value. In establishing their valuation, with input from market specialists, the directors have considered recent market transactions on arm's length terms for similar local properties. The most recent external valuations obtained were prepared by Knight Frank in March 2025.
If revalued assets were stated on an historical cost basis rather than a fair value basis, the carrying amounts would have been cost of £4,189,296 (2025 - £4,156,049) and depreciation £315,314 (2025 - £294,998).
| 2026 | 2025 | ||
| £ | £ | ||
| Carrying value |
|
|
| Investment property | |
| £ | |
| Valuation | |
| As at 01 February 2025 |
|
| As at 31 January 2026 |
|
Valuation
The directors consider the carrying value to be a fair reflection of the market value at the balance sheet date.
Historic cost
If the investment properties had been accounted for under the cost accounting rules, the properties would have been measured as follows:
| 2026 | 2025 | ||
| £ | £ | ||
| Historic cost | 968,802 | 968,802 |
The fair value of the investment property has been arrived at on reclassification from freehold property at net book value, comprising cost of £1,127,864 and depreciation £159,062. The directors consider the carrying value to be a fair reflection of the market value at the balance sheet date, with the most recent external valuations provided by Knight Frank in March 2025.
| 2026 | 2025 | ||
| £ | £ | ||
| Stocks |
|
|
| 2026 | 2025 | ||
| £ | £ | ||
| Trade debtors |
|
|
|
| Amounts recoverable on contracts |
|
|
|
| Amounts owed by Group undertakings (note 22) |
|
|
|
| VAT recoverable |
|
|
|
| Corporation tax |
|
|
|
| Other debtors |
|
|
|
| Prepayments |
|
|
|
| Amounts owed by directors (note 22) |
|
|
|
|
|
|
| 2026 | 2025 | ||
| £ | £ | ||
| Bank loans (secured) |
|
|
|
| Trade creditors |
|
|
|
| Taxation and social security |
|
|
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| Accruals |
|
|
|
| Other creditors |
|
|
|
|
|
|
Bank loans are secured by a fixed and floating charge over the company's assets.
| 2026 | 2025 | ||
| £ | £ | ||
| Bank loans (secured) |
|
|
| Bank loans | |||
| 2026 | 2025 | ||
| £ | £ | ||
| Between one and two years |
|
|
|
| Between two and five years |
|
|
|
| After five years |
|
|
|
|
|
|
||
| On demand or within one year |
|
|
|
| 2,633,334 | 1,843,334 |
| Deferred taxation | Other | Total | |||
| £ | £ | £ | |||
| At 01 February 2025 |
|
|
1,441,838 | ||
| Charged to the Profit and Loss Account |
|
|
174,539 | ||
| Charged to the Statement of Comprehensive Income |
|
|
324,147 | ||
| At 31 January 2026 |
|
|
1,940,524 | ||
Other provisions are made in respect of restoring land and buildings, occupied under operating lease agreements, to their former condition. The provision is expected to be utilised on termination of such leases, subject to their renewal.
Deferred tax
| 2026 | 2025 | ||
| £ | £ | ||
| Accelerated capital allowances |
|
|
|
| Other timing differences |
|
(
|
|
| Provision for deferred tax |
|
|
| 2026 | 2025 | ||
| £ | £ | ||
| At the beginning of financial year | (
|
(
|
|
| Charged to the Profit and Loss Account | (
|
(
|
|
| Charged to the Statement of Comprehensive Income | (
|
|
|
| At the end of financial year | (
|
(
|
| 2026 | 2025 | ||
| £ | £ | ||
| Allotted, called-up and fully-paid | |||
|
|
|
|
|
|
|
|
|
|
| 100 | 100 | ||
| Presented as follows: | |||
| Called-up share capital presented as equity | 100 | 100 |
rates.
Ordinary Z shares have no voting or dividend rights.
The share premium reserve contains the premium arising on issue of equity shares, net of issue expenses.
The profit and loss reserve represents cumulative profits or losses, including unrealised profit on the remeasurement of investment properties, net of dividends paid and other adjustments.
The revaluation reserve represents the cumulative effect of historic revaluations of freehold land and buildings.
Commitments
Total future minimum lease payments under non-cancellable operating leases are as follows:
| 2026 | 2025 | ||
| £ | £ | ||
| Within one year |
|
|
|
| Between one and five years |
|
|
|
| After five years |
|
|
|
| Total future minimum lease payments under non-cancellable operating leases |
|
|
Pensions
The Company operates a defined contribution pension scheme for the directors and employees. The assets of the scheme are held separately from those of the Company in an independently administered fund.
| 2026 | 2025 | ||
| £ | £ | ||
| Unpaid contributions due to the fund (inc. in other creditors) |
|
|
The Company has availed of the exemption provided in FRS 102 Section 33 Related Party Disclosures not to disclose transactions entered into with fellow group companies that are wholly owned within the group of companies of which the Company is a wholly owned member.
Transactions with the entity’s directors (or members of its governing body)
Amounts owed to directors
Advances
During the year a further entered a loan account with the company. Advances of £8,376 were made on this loan. Interest is charged on the loan, when overdrawn, at the HMRC effective rate of interest, if exceeding a balance of £10,000. At the balance sheet date, the director owed the company £8,376 (2025: £0). The loan is repayable on demand.
Guarantees
The assets and liabilities acquired in the subsidiary undertaking include:
| 2026 | |
| £ | |
| Tangible assets | 360,800 |
| Less deductions for skip retrieval | (37,812) |
| Costs paid for by seller | 14,845 |
| Goodwill | 150,000 |
| 487,833 |
First Call Skips
On 21 July 2025 the trade and assets of First Call Skips was acquired by the group for a sale price of £510,800. After accounting for legal fees paid on behalf of the seller £11,955, deductions for skip retrieval of £37,812 and advance rent paid by the seller of £2,890 the total consideration was £487,833. The acquisition method of accounting has been adopted.
Parent Company:
|
|
| Green Street, Ston Easton, Radstock, Somerset, United Kingdom, BA3 4BY |