REGISTERED NUMBER: 04824000 (England and Wales)

Strategic Report,

Report of the Directors and

Financial Statements

for the Year Ended 31 October 2025

for

Welton Aggregates Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Income Statement

6

Other Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Cash Flow Statement

10

Notes to the Cash Flow Statement

11

Notes to the Financial Statements

12

DIRECTORS:

J P Faulkner-Smith

G A Tomlinson

S C Faulkner-Smith

P J Jackson

Z Waite

SECRETARY:

J P Faulkner-Smith

REGISTERED OFFICE:

Welton House

Bluestone Heath Road

Welton-Le-Marsh

Spilsby

Lincolnshire

PE23 5SG

REGISTERED NUMBER:

04824000 (England and Wales)

SENIOR STATUTORY AUDITOR:

James Sewell BA (Hons) FCA CTA

AUDITORS:

Wright Vigar Limited

Statutory Auditors

Chartered Accountants & Business Advisers

15 Newland

Lincoln

Lincolnshire

LN1 1XG

The directors present their strategic report for the year ended 31 October 2025.

REVIEW OF BUSINESS

The directors report that turnover for the year decreased to £12.3m (2024: £13.7m), reflecting a 10% decrease in the year due to lower aggregate volumes compared with the previous year.

As a result of the reduction in revenue, net profit decreased to £94k (2024: £163k). The decline in profitability was attributable to lower production volumes, ongoing inflationary pressures, and challenging market conditions experienced during the year.

Despite these challenges, the company maintained a strong focus on operational performance and cost management across its quarrying operations.The company also invested in plant and equipment during the year, which was required to maintain operational reliability and efficiency.

The company continues to maintain a stable financial position, with net assets of £8.4m at the year end (2024: £8.3m). The directors remain focused on managing costs effectively, preserving cash resources and positioning the business to benefit from future improvements in market conditions.

PRINCIPAL RISKS AND UNCERTAINTIES

The company operates in a sector that is influenced by economic activity, construction demand and regulatory requirements. The principal risks and uncertainties facing the company are:

-

Market demand risk arising from fluctuations in construction and infrastructure activity

-

Fuel and energy cost inflation, which can significantly affect production and transport costs.

-

Planning and environmental regulation risk, including compliance with quarrying permits and restoration obligations

-

Health and safety risk, given the nature of the quarry operations and the use of heavy plant and machinery.

-

Availability of mineral reserves, requiring careful long-term management of extraction plans and permitted reserves.

The Directors work to identify and manage our principal risks effectively in order to maintain our longer term strategy, in accordance with our priorities and appetite to risk.

DEVELOPMENT AND PERFORMANCE

Welton Aggregates Limited, in the absence of any further unforeseen obstacles, will continue to strengthen commercially and operationally going forward.

The directors remain cautiously optimistic regarding future trading. The company will continue to focus on operational efficiency, responsible quarry management, investment in plant and equipment where appropriate, and maintaining high standards of safety and environmental stewardship. Management will also continue to seek opportunities to expand its customer base and secure long-term sustainable growth.

The directors would like to extend thanks to all their staff for their dedication and hard work during the year in recent challenging times. The business anticipates it will achieve its projected profit margins and go from strength to strength thanks to them.

ON BEHALF OF THE BOARD:

J P Faulkner-Smith - Director

30 October 2026

The directors present their report with the financial statements of the company for the year ended 31 October 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of quarrying and supplying chalk, limestone and other hardcore materials.

DIVIDENDS

No dividends will be distributed for the year ended 31 October 2025.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 November 2024 to the date of this report.

J P Faulkner-Smith

G A Tomlinson

Other changes in directors holding office are as follows:

S C Faulkner-Smith - appointed 4 November 2024

P J Jackson and Z Waite were appointed as directors after 31 October 2025 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

J P Faulkner-Smith - Director

30 October 2026

Opinion

We have audited the financial statements of Welton Aggregates Limited (the 'company') for the year ended 31 October 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 October 2025 and of its profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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

Our work is performed to include an assessment of the susceptibility of the entity's financial statements to material misstatement, including the risk of fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).

In identifying and assessing risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

- We plan our work to gain an understanding of the significant laws and regulations that are of significance to the entity and the sector in which they operate. We perform our work to ensure that the entity is complying with its legal and regulatory framework.

- We obtained an understanding of how the company is complying with those legal and regulatory frameworks by making inquiries to the management and people charged with governance.

We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

- Substantive procedures performed in accordance with the ISAs (UK).

- Challenging assumptions and judgments made by management in its significant accounting estimates.

- Identifying and testing journal entries, in particular material journal entries and an assessment of year end journals.

- Assessing the extent of compliance with the relevant laws and regulations.

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

Use of our report

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

James Sewell BA (Hons) FCA CTA (Senior Statutory Auditor)

for and on behalf of Wright Vigar Limited

Statutory Auditors

Chartered Accountants & Business Advisers

15 Newland

Lincoln

Lincolnshire

LN1 1XG

30 October 2026

TURNOVER

3

12,324,091

13,711,646

Cost of sales

10,567,783

12,076,567

GROSS PROFIT

1,756,308

1,635,079

Administrative expenses

1,445,519

1,625,142

310,789

9,937

Other operating income

4

282,776

187,646

OPERATING PROFIT

6

593,565

197,583

Interest receivable and similar income

336

708

593,901

198,291

Interest payable and similar expenses

7

261,848

345,531

PROFIT/(LOSS) BEFORE TAXATION

332,053

(147,240

)

Tax on profit/(loss)

8

238,195

(309,764

)

PROFIT FOR THE FINANCIAL YEAR

93,858

162,524

PROFIT FOR THE YEAR

93,858

162,524

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

93,858

162,524

FIXED ASSETS

Tangible assets

9

11,385,996

11,287,389

CURRENT ASSETS

Stocks

10

1,243,795

1,143,741

Debtors

11

8,185,547

8,386,666

Cash at bank

15,386

221,823

9,444,728

9,752,230

CREDITORS

Amounts falling due within one year

12

7,295,852

8,364,899

NET CURRENT ASSETS

2,148,876

1,387,331

TOTAL ASSETS LESS CURRENT LIABILITIES

13,534,872

12,674,720

CREDITORS

Amounts falling due after more than one year

13

(3,808,760

)

(3,280,661

)

PROVISIONS FOR LIABILITIES

17

(1,354,145

)

(1,115,950

)

NET ASSETS

8,371,967

8,278,109

CAPITAL AND RESERVES

Called up share capital

18

1,000

1,000

Revaluation reserve

19

635,500

635,500

Retained earnings

19

7,735,467

7,641,609

SHAREHOLDERS' FUNDS

8,371,967

8,278,109

The financial statements were approved by the Board of Directors and authorised for issue on 30 October 2026 and were signed on its behalf by:

J P Faulkner-Smith - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 November 2023

1,000

7,479,085

635,500

8,115,585

Changes in equity

Total comprehensive income

-

162,524

-

162,524

Balance at 31 October 2024

1,000

7,641,609

635,500

8,278,109

Changes in equity

Total comprehensive income

-

93,858

-

93,858

Balance at 31 October 2025

1,000

7,735,467

635,500

8,371,967

Cash flows from operating activities

Cash generated from operations

1

1,458,208

1,754,631

Interest paid

(32,372

)

(33,910

)

Interest element of hire purchase and finance lease rental payments paid

(229,476

)

(311,621

)

Taxation refund

-

148,803

Net cash from operating activities

1,196,360

1,557,903

Cash flows from investing activities

Purchase of tangible fixed assets

(2,720,696

)

(1,925,143

)

Sale of tangible fixed assets

1,007,634

954,841

Interest received

336

708

Net cash from investing activities

(1,712,726

)

(969,594

)

Cash flows from financing activities

New loans in year

-

900,000

Loan repayments in year

(101,705

)

(422,093

)

Capital repayments in year

370,811

(853,312

)

Amount introduced by directors

138,237

-

Amount withdrawn by directors

(97,414

)

(39,924

)

Net cash from financing activities

309,929

(415,329

)

(Decrease)/increase in cash and cash equivalents

(206,437

)

172,980

Cash and cash equivalents at beginning of year

2

221,823

48,843

Cash and cash equivalents at end of year

2

15,386

221,823

1.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit/(loss) before taxation

332,053

(147,240

)

Depreciation charges

1,999,890

2,130,533

Profit on disposal of fixed assets

(385,435

)

(405,471

)

Finance costs

261,848

345,531

Finance income

(336

)

(708

)

2,208,020

1,922,645

(Increase)/decrease in stocks

(100,054

)

97,974

Decrease/(increase) in trade and other debtors

160,296

(1,530,554

)

(Decrease)/increase in trade and other creditors

(810,054

)

1,264,566

Cash generated from operations

1,458,208

1,754,631

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 October 2025

31.10.25

1.11.24

£

£

Cash and cash equivalents

15,386

221,823

Year ended 31 October 2024

31.10.24

1.11.23

£

£

Cash and cash equivalents

221,823

48,843

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.11.24

Cash flow

At 31.10.25

£

£

£

Net cash

Cash at bank

221,823

(206,437

)

15,386

221,823

(206,437

)

15,386

Debt

Hire purchase and finance leases

(4,908,767

)

(370,811

)

(5,279,578

)

Debts falling due within 1 year

(90,000

)

-

(90,000

)

Debts falling due after 1 year

(761,705

)

101,705

(660,000

)

(5,760,472

)

(269,106

)

(6,029,578

)

Total

(5,538,649

)

(475,543

)

(6,014,192

)

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Turnover

Turnover represents amounts charged to customers for goods and services provided during the year, excluding value added tax and trade discounts. Sales are recognised upon delivery to the customer, or upon collection by the customer.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Short leasehold -

2% per annum

Property improvements -

10% on cost

Plant and machinery -

at varying rates on cost and at variable rates on reducing balance

Tractors -

20% on cost

Motor vehicles -

20% on cost

Computer equipment -

25% on cost

The freehold property, which relates to a quarry, is not amortised by the company as, in the opinion of the directors, it is already included at its minimum open market value. The cost is based upon the life span of the land as a quarry and upon the land's future use once quarrying has ceased.

Stocks

Stocks of mined stone are valued after taking account of relevant costs such as wages and machine running costs. Stocks of purchased aggregates are valued at the lower of cost and net realisable value, after making allowance for obsolete and slow moving items.

Mineral rights represent a right to future extraction. Mineral rights are valued at the lower of cost and net realisable value.

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives.

The interest element of these obligations is charged to the profit and loss account over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

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

3.

TURNOVER

The turnover and profit (2024 - loss) before taxation are attributable to the one principal activity of the company.

The principal activity of the company took place within the United Kingdom.

4.	OTHER OPERATING INCOME

2025

2024

£

£

Sundry receipts

282,776

179,646

Management charge

-

8,000

282,776

187,646

5.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

2,058,583

2,297,177

Social security costs

214,014

202,627

Other pension costs

31,479

35,206

2,304,076

2,535,010

The average number of employees during the year was as follows:

2025

2024

Employees

64

73

2025

2024

£

£

Directors' remuneration

62,800

121,005

Directors' pension contributions to money purchase schemes

1,510

2,927

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

3

3

6.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2025

2024

£

£

Hire of plant and machinery

27,163

36,354

Depreciation - owned assets

1,999,890

2,130,533

Profit on disposal of fixed assets

(385,435

)

(405,471

)

Auditors' remuneration

16,500

25,440

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank loan interest

32,372

33,910

Hire purchase

229,476

311,621

261,848

345,531

8.

TAXATION

Analysis of the tax charge/(credit)

The tax charge/(credit) on the profit for the year was as follows:

2025

2024

£

£

Current tax:

R&D tax credit

-

(148,803

)

Deferred tax

238,195

(160,961

)

Tax on profit/(loss)

238,195

(309,764

)

UK corporation tax has been charged at 25% (2024 - 25%).

Reconciliation of total tax charge/(credit) included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£

£

Profit/(loss) before tax

332,053

(147,240

)

Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

83,013

(36,810

)

Effects of:

Expenses not deductible for tax purposes

1,761

2,263

Depreciation in excess of capital allowances

223,765

151,718

Profit/loss on disposal of assets

(96,359

)

(101,368

)

Deferred tax

238,195

(160,961

)

R&D Tax credit and additional losses

-

(198,393

)

Losses brought forward

(955,117

)

(921,330

)

Losses carried forward

742,937

955,117

Total tax charge/(credit)

238,195

(309,764

)