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

We aim to present a balanced and comprehensive review of the development of the business during the year and its position at the year end. The review is consistent with the size and non-complex nature of the business. The group again invested in training, manufacturing, sustainability and strengthening its systems as foundations for a business looking to make the most of the opportunities in the market.

Working predominantly in the construction industry, health and safety is one of the group's most important KPIs and we recorded zero RIDDOR (three in 2025) across our own staff and subcontractors, providing evidence that the group continues to be a safe place to work. The health & safety team monitor a range of KPIs to ensure our policies and behaviours are effective and encourage engagement with regular communication.

The directors have supported the group's enhanced commitment to ESG and recognise the importance it has on its stakeholders.

The group continued to work with an external non-profit social enterprise that encourages inclusion and diversity in STEM related careers, extending its recah to two Gloucester primary schools, raised money for several charities, and continued with our commitment and support of future generations through our association with the Lord’s Taverners and their programme to positively impact the lives of young people facing the challenges of inequality.

Market risk

The group, alongside other businesses in the construction sector, is subject to similar risks from operating in that sector and from the position of the economy as a whole. The board monitors the state of the market segments that affect the business and evolves the business strategy as required with turnover again forecast to grow.

Financial risk

The group’s financial instruments comprise cash at bank and various items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise adequate finance for the group’s operations. The group is confident that all monies owed to its undertakings are recoverable and has adequate credit insurance in place to support this.

The main risks arising from the group’s financial instruments are interest and currency fluctuations. It is the group’s policy to finance its operations through a mixture of retained cash and strong credit management and to review periodically the mix of these instruments with regard to the projected cash flow requirements of the group and an acceptable level of risk exposure.

The group mitigates any risk associated with contracts entered into in foreign currency with the use of matching forward contracts, where appropriate.

Gross margin for the year was 25.35% (2025: 22.95%) reflecting the competitive environment. Cash remains strong at £16.6m (2025: £7.5m).

Maintaining strong relationships with key stakeholders together with the high standards in health and safety, quality and the continuing investment in staff learning and development, sustainability and efficiency are integral to improve delivery for clients and market opportunities.

In line with their duties under Section 172 of the Companies Act 2006 the Board of Directors are required to act in a way they consider in good faith would most likely promote the success of the group for the benefit of the shareholders and key stakeholders. In doing this they should have regard to a range of matters and the likely consequence of any decisions in the long term.

The following matters are set out in Section 172:

-    likely consequences of any decision in the long term

-    interests of the group's employees

-    need to foster the group's business relationships with suppliers, customers and others

-    impact of the group's operations on the community and the environment

-    the desirability of the group maintaining a reputation for high standards of business conduct

-    the need to act fairly as between members of the group

Employees

The group engages with employees on a regular basis, covering a range of topics such as health and safety, financial performance and training and development. Our people are of significant importance in implementing our long term strategies and it is therefore key that they are informed.

Environmental responsibility

The group considers the external environment in several ways, and recognises that it has a responsibility to continually reduce its environmental impact. The group endeavours to comply with all relevant statutory requirements and has ensured that all currently available methods for reducing its CO2 impact are implemented where possible.

Customers

Our aim is to deliver a first class service to all our customers. The group seeks to do this by primarily delivering a quality product. As well as this, we work on developing long term customer relationships through regular communication so we have a full understanding of their needs.

Suppliers

The long term success of the group depends on building strong relationships with its suppliers. Regular meetings are held which gives both parties the opportunity to discuss challenges and opportunities. This helps ensure continued and timely supply of raw materials.

Government and regulators

The directors ensure the group is compliant with all regulatory requirements, in particular health and safety regulations and the Modern Slavery Act, when considering future actions.

On behalf of the board

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

The principal activity of the company and group continued to be that of construction of temperature controlled buildings and environments, fire walls, installation of external cladding, the maintenance and repair of temperature controlled environments. The subsidiaries' principal activities are that of industrial and commercial insulation contractors, and the manufacture of thermally insulated access solutions and metal fabrications, predominantly serving the coldstore industry and other controlled environments such as pharmaceuticals and laboratories. The goods manufactured include a variety of hinged and sliding doors as well as a multitude of metal fabrications, which support the erection and completion of composite structures.

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £740,000. The directors do not recommend payment of a further dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The Streamlined Energy and Carbon Reporting (SECR) disclosure showing the group’s carbon footprint for 2026 is set out as follows.

Responsibilities

The P&M Group oversaw the internal processes for collecting the relevant data and inputted this data into the Carbon Alt Delete carbon calculator. Carbon Alt Delete performs all the GHG calculations in accordance with the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard, employing the following emission factor sources to calculate emissions, expressed in tonnes of CO2 equivalent (tCO2e):

• ecoinvent 3.10.1;

• ecoinvent 3.11;

• ecoinvent 3.12;

• GOV.UK Spend Factors v2025;

• IEA Emission Factors for Energy v2025.01;

• Open CEDA by Watershed v2024;

• Open CEDA by Watershed v2025;

• UK.gov GHG Reporting Factors v2025 1.0;

• UK.gov GHG Reporting Factors v2026 1.0.

Notes, disclaimers and exclusions

Alongside the mandatory emissions, The P&M Group has included where practical, voluntary Scope 3 data for all trading names and subsidiaries. All material Scope 3 categories where data is available are included, and there are plans to calculate Scope 3 holistically in the future.

Business Travel for The P&M Group UK excludes accommodation due to the unavailability of this data. It is included for all other parts of the Group. We plan to capture this data for The P&M Group UK in the future.

This year a large increase in Scope 3 emissions can be observed across the Group. This can partly be explained by a change in the emissions dataset used for spend, where no activity data was available. This generally had a higher emission factor than the previous dataset, but brings us in line with the standard used in the industry.

Subcontractor travel (including accommodation) has been estimated based on our own project records due to actual data being unavailable.

Regarding the turnover, in the Group emissions table, this is the consolidated figure.

The total emissions figure uses the location-based method.

Energy efficiency actions

The P&M Group has continued to improve energy efficiency alongside embedding holistic sustainability throughout the business. The company strategy is centred around improving their positive impact.

At The P&M Group UK, several initial steps have been taken to retrofit the office, although nothing has been implemented to date. These have included undertaking an EV & Solar survey, replacing/upgrading windows as well as replacing the aircon units with more efficient HVAC units, reducing the reliance on inefficient boiler system for heating in the process.

Across the Group, we increased our social value activities to launch P&M for STEM, delivering fun science experiments to primary school children to encourage them to pursue a career in STEM and construction.

Looking ahead, there are a number of initiatives the Group are exploring. Alongside the longer-term projects mentioned last year which are ongoing (moving away from diesel plant on site, exploring low-carbon vehicles, promoting suppliers’ low carbon products, improving data collection processes to increase accuracy), steps have been taken to improve the thermal efficiency of the buildings as outlined above and can hopefully progress.

Waste management processes have started to be revamped to start improving our waste outcomes and move towards our goal of zero waste to landfill by 2030. This work will follow next year.

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). 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 company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

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

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Other matters required to be disclosed in the Report of the Directors in accordance with section 416(4) of the Companies Act 2006 in relation to financial risks and future developments are set out in the Strategic Report on pages 1&2 in accordance with section 414C(11) of the Companies Act 2006.true

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

We have audited the financial statements of The P & M Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2026 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, 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:

• give a true and fair view of the state of the group's and 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; and

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and 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 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 our 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.

In the light of the knowledge and understanding of the group and the parent company and their 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.

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 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 parent 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 is available on the Financial Reporting Council’s website at: https://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 and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we 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.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

• Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud; 

• Reviewing minutes of meetings of those charged with governance;

• Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection; 

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

• Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias. 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  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.

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.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,989,965 (2025 - £620,179 profit).

The P & M Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office can be found on the company information page.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, 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, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated group financial statements consist of the financial statements of the parent company The P & M Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 31 January 2026. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Balances held by subsidiaries that are not in the functional currency of the group are retranslated using the period end exchange rate for assets and liabilities and at the average foreign exchange rate for the period for all profit or loss items. Any difference arising on retranslation into the functional currency are recognised within other comprehensive income.

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from contracts for the provision of 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 hourly 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 it is probable will be recovered.

Amounts recoverable on contracts relate to the value of work carried out on a contract before the balance sheet date, but for which a sales invoice has not been raised.

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

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 recognised in the profit and loss account.

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

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.

Work in progress is valued by reference to the stage of completion of a contract at the balance sheet date, and is based on the costs incurred to date in performing the contract work together with an appropriate addition for gross profit measured according to the stage of completion of the contract and the certainty of ultimate margin.

Long-term contracts

Long-term contract balances represent costs incurred on specific contracts, net of amounts transferred to cost of sales in respect of work recorded as turnover, less foreseeable losses and payments on account not matched with turnover.

Turnover is recognised by reference to the fair value of work carried out at the balance sheet date. No profit is recognised until the contract has advanced to a stage where the total profit can be assessed with reasonable certainty. Attributable profit is calculated based on the contact's total anticipated profit at the balance sheet date and that fairly reflects the proportion attributable to the work performed at the accounting date. Provision is made for the full amount of foreseeable losses on contracts.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

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 group after deducting all of its 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.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. 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 period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The stage of completion on contracts in progress at the year-end has been estimated in line with the value of work completed to date as a proportion of the total expected value of that contract.

Any sales invoices raised in relation to periods after the period end are included within deferred income, with any amounts not invoiced at the period end but relating to the period before the period end being included within amounts recoverable on contract.

The expected gross margin for a contract has been used in order to determine the value of any provision for purchases or work in progress for that contract. This is based upon the difference between the expected costs to date and the value of costs received to date.

Based on the above the following have been recognised:

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

All turnover relates to income generated from contract revenue.

An amount of £6,162,507 (2025 - £5,481,825) is due from customers for contract work carried out within trade debtors as well as retentions amounting to £4,358,287 (2025 - £2,443,093).

The average monthly number of persons (including directors) employed by the group and company during the year was:

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2025 - 4).

No directors exercised share options during the year (2025 - none).

All of the above is as stated for the company and the group.

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

Factors that may affect future tax charges

A rate of 25% (2025: 25%) has been used for purposes of considering the effects of deferred taxation, in line with the main rate of UK Corporation Tax.

Amortisation for intangible fixed assets is included within administrative expenses in the statement of comprehensive income.

Group and company

Included in the above values are assets held under finance leases totalling £276,385 (2025: £377,509) with depreciation of £82,114 (2025: £160,154).

Company

All tangible fixed assets are pledged as security for any bank facilities of the company under a debenture.

Included in the above carrying values are assets held under finance leases totalling £66,488 (2025: £129,029) with depreciation of £47,230 (2025: £107,019).

Company

All fixed asset investments are pledged as security for any bank borrowings of the company under a debenture.

Details of the company's subsidiaries at 31 January 2026 are as follows:

Company

The total carrying amount of stock is pledged as security for any bank facilities of the company under a debenture.

Company

All debtor balances held by the company are pledged as security for any bank facilities of the company under a debenture.

Amounts owed by group undertakings are unsecured, interest free, have no fixed repayment date and are repayable on demand.

Company

Amounts owed to group undertakings are unsecured, interest free, have no fixed repayment date and are repayable on demand.

Amounts owed to directors, included within other creditors totalling £1,116 (2025 - £3,302) are unsecured, have no fixed date of repayment and are repayable on demand. Interest is charged at 6% on these balances.

The hire purchase and finance lease obligations are secured over the assets to which they relate. Interest rates underlying these obligations are fixed at respective contract rates ranging between 2.77% and 8.92%.

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

The deferred tax balance noted above has been calculated assuming a tax rate of 25% (2025 - 25%).

Called-up share capital represents the nominal value of shares that have been issued.

The "A" Ordinary shares rank pari passu with the Ordinary shares.

Share options have been issued under the company's EMI scheme, as described in the share-based payment transaction note. A total of 25 shares (2025 - 25) are classified as reserved for issue in connection with this.

The share premium represents the amount subscribed for share capital in excess of nominal value.

The capital redemption reserve relates to amounts transferred from share capital on redemption of issued shares.

The other reserves relate to foreign exchange differences arising on translation of an overseas subsidiary into the functional currency of the group.

Retained earnings includes all current and prior period retained profits and losses.

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group and company

Included within certain operating leases above were break clauses which were not exercised post year end. As a result, further commitments totalling £849,181 have been entered into since the balance sheet date with respect to these leases, spread across a period of five years from the date of the lapsed break clause.

As at 31 January 2026, the group and company had capital commitments of £Nil (2025 - £Nil).

As at 31 January 2026, the group and company had contingent liabilities of £Nil (2025 - £Nil).

The company acquired 100% of the ordinary share capital of HBCL Coldstores Limited on 13 March 2026.

The following amounts were outstanding at the reporting end date:

The following amounts were outstanding at the reporting end date:

These amounts are included within other debtors, and are unsecured, have no fixed date of repayment and are repayable on demand. Included in these amounts is £15,000 (2025: £15,000) on which interest is charged at the Bank of England base rate plus 3%.

Group and company

During the year interest was paid on balances due to shareholders and close family members of £11,695 (2025 - £19,597).

Total compensation payable by the group to directors and close family members for the year was £1,354,555 (2025 - £1,156,372) and is inclusive of amounts recognised within accruals of £256,011 (2025: £177,524).

Company

Total compensation payable by the company to directors and close family members for the year was £1,075,678 (2025 - £960,572) and is inclusive of amounts recognised within accruals of £256,011 (2025: £177,524).

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

Dividends totalling £610,000 (2025 - £115,385) were paid in the year in respect of shares held by the company's directors.

The following advances and credits to a director subsisted during the year ended 31 January 2026:

At the year end, ultimate control of the company resided with A P Moon.

Options over 25 "A" Ordinary shares, with an exercise price of £1,840 per share were outstanding as at 31 January 2026 (2025: 25).

The company is unable to directly measure the fair value of employee services received. The internationally recognised Black-Scholes model has therefore been used to assess the value of the EMI options granted.

The total charge for the period was £Nil (2025 - £Nil).