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

The principal activity of the company is that of a specialist construction sub-contractor, delivering SFS, drylining and decorations packages.

There has been no significant change in these activities during the year.

Turnover has increased by 48.9% to £26.9m (2025: £18.1m). Last year the directors said they expected a recovery in turnover, supported by a secured order book of £29.2m carried into the year. That recovery has been delivered, and turnover for the year is broadly in line with the target set in the company’s five year strategic plan.

Profit before tax for the year was £21,606 (2025: £1,222,081). The reduction is due to a bad debt charge of £1.22m. This relates to a main contractor client which entered administration after the year end, which the directors have treated as an adjusting event. The charge is stated net of the amount expected to be recovered under the company’s trade credit insurance policy.

Before this charge, operating profit was £1.47m (2025: £1.28m). Gross margin was 11.5% (2025: 16.1%). The fall in margin reflects the wider challenging UK economic conditions with a particular focus on increased competition and lower values at tender stage.

Administrative expenses rose by 75% to £2.84m and increased as a share of turnover from 9.0% to 10.6%.

Cash at bank at the year end was £0.18m (2025: £0.78m).

The directors recognise that the result for the year is below expectations although it does demonstrate financial resilience given that the business has successfully traded through the insolvency event. Margin, cash and client risk reduction are the priorities for the current year.

Business Outlook

At the year end the secured order book was £20m (2025: £29.2m). At the date of this report, the secured order book stands at £22.6m, with a further £10.92m of projects at preferred bidder or advanced negotiation stage.

Trading in the first half of the current year has returned the business to an operating margin of approximately 7%. The directors have deliberately prioritised margin over volume.

The London residential market was held back throughout 2025 by delays in Building Safety Regulator approvals for higher-risk buildings. This reduced the number of mid to high-rise schemes starting on site and therefore the number of drylining and SFS packages available to tender. Approval times have shortened during 2026 and London housing starts have begun to recover, although from a low base. The directors expect this to support the pipeline from 2027 rather than in the current year.

The business continues to invest in sourcing, developing and retaining its own people, primarily through in-house training and development programmes and vocationally recognised professional qualifications. High performers continue to undertake structured executive coaching programmes to develop their management of people, processes and business resources.

The UK construction market remained difficult throughout the year. Main contractor insolvencies stayed at a high level and the Building Safety Act gateway process continued to delay the start of mid to high-rise residential schemes in London.

Since the year end the geopolitical climate has become a more significant risk. Conflict in the Middle East has pushed up oil and gas prices, and construction materials inflation has risen from around 2% at the year end to around 6% by mid-2026. Steel has been most affected, which is directly relevant to the company’s SFS and metal framing work, and energy-intensive products such as plasterboard are exposed to further increases. Higher inflation has also reduced the scope for interest rate cuts, which affects house buyer demand and the viability of new residential schemes.

The principal risks considered and managed in the execution of the business’s strategic objectives are:

• Main contractor insolvency

• Payment and certification practices, including delays in agreeing variations and final accounts

• Delays to the residential pipeline caused by the Building Safety Act gateway regime

• Materials and energy cost inflation linked to geopolitical events, particularly steel and plasterboard

• Housing market conditions, including interest rates, buyer demand and scheme viability

• Margin pressure from competitive tendering

• Replenishment of the secured order book

• Health & Safety – with a particular focus on Occupational Health

• Quality of performance

Materials price risk is managed through limited tender validity periods, early procurement and price agreements with manufacturers and distributors on secured contracts, and by seeking price fluctuation provisions on packages with later start dates. Housing market risk is managed by widening the spread of work beyond London high-rise residential, into residential schemes outside London, social housing, education and other growing sectors.

In terms of managing risk and uncertainty, the company is within the ownership of a responsive board which enables the business to be flexible, proactive and to act quickly and decisively where swift decision making is required, alongside making effective medium and long-term decisions to manage more visible and industry standard risks in line with the business strategy.

The directors expect performance to improve in the current year through a focus on margin, tighter client selection and the delivery of existing secured contracts. Trading since the year end supports this view.

                2026         2025

Turnover Growth 49% (11%)

Gross Profit Margin         11.5%        16.1%

Operating profit     £248,536     £1,282,139

Profit after tax      0.1%         4.4%

Cash at Bank     £182,903     £776,481

Shareholders Equity     £2,513,219    £3,097,937

• Environment

The business recognises its responsibility to carry out its operations whilst minimising environmental impacts. It is the Directors’ continued aim to comply with all applicable environmental legislation, prevent pollution and reduce waste wherever possible.

• Human resources

The directors recognise that the company’s most important resource is its people. Their experience, knowledge and relationships are crucial to the company’s ability to meet and exceed client expectations. Retaining existing staff and attracting the most talented people in the industry are key to the wider objectives of client base consolidation and growth. The dedicated HR resource introduced in the prior year is now fully embedded.

• Health & Safety

Keylon Interiors is committed to achieving and maintaining the highest practicable standards in health and safety management and strives to make its site and office environments safe and comfortable for employees and customers alike.

Keylon Interiors Limited is committed to remaining an owner managed business and will continue with its strategy of prioritising business objectives ahead of shareholders’ interests. Strong cash generation, combined with healthy and sustainable gross and net profit percentages, remain the overarching objectives. These provide the headroom for ongoing investment and protection against adverse changes in the principal risks and uncertainties.

The directors of Keylon Interiors Limited, in line with their duties under s172 of the Companies Act 2006, act in a way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole. In doing so, the directors consider a range of matters when making decisions for the long term. Key decisions and matters of strategic importance are informed by s172 factors. The success of the company depends on the support of all stakeholders. The board and senior leadership team make decisions with a long-term view and to the highest standards of conduct in line with company policies. Reports across all areas of the business are made available to the board so that key decisions are made with proper consideration of their impact on stakeholders.

• Customers

We have built strong, service-orientated relationships with our key clients and the directors maintain regular communication with them through on and off-site meetings. These meetings allow two-way dialogue and the early identification and resolution of issues, reinforcing those relationships and the value of the business to its clients. They also give the directors early visibility of the strategic pipeline. During the year the directors also increased their focus on the financial standing of clients, so that relationships are built with clients able to support the business over the long term.

• Employees & Workforce engagement

The employees of Keylon Interiors are the most valuable resource of the company and are at the heart of everything it does. The business operates a planned hybrid working model, developed in consultation with staff, which balances flexible working with collaboration at a central operational hub and supports a good home and work life balance.

• Suppliers

The board recognises that suppliers are integral to the success of the business and that strong, ethical relationships are essential to meeting stringent quality, performance and delivery requirements. The directors are experienced in supplier relationship management and procurement and maintain strong communication with the supply chain. The business has developed very good relationships with industry-leading manufacturers and distributors, which also provide valuable market intelligence and technical and regulatory insight. The company pays suppliers in line with commercially agreed payment terms.

• Community & Environment

We recognise the important role the company plays in the local community. Social value principles are at the heart of the business, with a focus on creating local employment opportunities and improving our environmental credentials. The company has appointed relevant expert advisers so that the board is aware of, and the company meets, all relevant legal and regulatory obligations, and so that potential opportunities and risks are identified.

On behalf of the board

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

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

The results for the year are set out on page 13.

Ordinary dividends were paid amounting to £600,000 (2025:£600,000). The directors do not recommend payment of a further dividend.

The company’s main financial instruments are bank and other loans, an invoice finance facility, cash, trade debtors, trade creditors and balances with related parties. These instruments mainly exist to fund the company’s operations and working capital.

The board reviews and agrees policies for managing each of the main risks below. These policies have stayed broadly the same during the year, but were reinforced after the client insolvency described in the strategic report.

The company manages liquidity to make sure it has enough funds for its operations and to meet its liabilities when they fall due. It funds working capital with cash generated from operations, an invoice finance facility with Ultimate Finance Limited and term loans from Santander UK plc, Funding Circle and Lending Crowd.

The directors prepare cash flow forecasts and review them regularly against the available facilities. Payment terms are agreed with suppliers and subcontractors, and the company works to agree applications, variations and final accounts promptly so that cash comes in on time.

The term loans carry fixed rates of interest, and the invoice finance facility bears interest at a margin over Bank of England base rate. The company is therefore exposed to changes in interest rates on its invoice finance borrowings. Total finance costs for the year were £227,803 (2025: £66,479). The directors monitor interest costs as part of the company’s monthly management reporting.

The company’s main credit risk is trade debtors, including retentions held by main contractors. The risk of a main contractor becoming insolvent remains high across the UK construction sector. During the year one client entered administration, and a bad debt charge of £1.22m was recognised.

The company manages credit risk by carrying out credit checks on new and existing clients before tendering, setting credit limits, monitoring client financial standing throughout each contract and insuring trade debts under a trade credit insurance policy.

Since the year end the directors have tightened client selection, giving priority to financially strong clients. Amounts owed by related parties are reviewed regularly for recoverability.

Despite continued cost pressures the business has continued to invest in the development of value engineering and buildability solutions, working alongside key clients and consultants to resolve complex and multi-faceted design and delivery issues. The business has also continued to invest in digital quality management and project management systems, including the development of AI-assisted estimating and bid review tools together with wider AI integration within the business.

On 11 June 2026 a main contractor client of the company entered administration. The administration provided further evidence of conditions that existed at the reporting date and has therefore been treated as an adjusting event. Amounts due from the client at 31 January 2026 have been provided for in these financial statements, net of the amount expected to be recovered under the company’s trade credit insurance policy, under which a claim has been made.

There have been no other significant events affecting the company since the year end.

The company operates predominantly in the Greater London and South East of England new build market.

During 2025 the London mid to high-rise residential market was held back by delays in Building Safety Regulator gateway approvals, and the number of new schemes starting on site fell sharply. Approval times have improved during 2026 and London housing starts have begun to recover from a low base. Nationally, new home registrations remain below the previous year.

The wider economic outlook has become less certain. Conflict in the Middle East has raised energy prices and construction materials inflation, inflation is expected to rise into 2027, and further interest rate reductions are now unlikely. These factors weigh on house buyer demand and the viability of new residential schemes, and the Building Safety Levy introduced in October 2026 adds a further cost for developers.

The directors’ view is that this will be offset by activity in other sectors in which the business operates, plus alternative locations which will continue to offer growth opportunities. These include, but are not limited to:

• Residential schemes outside of London

• Sector diversification re-targeting growing markets

• Large scale social regeneration and social housing projects

• The ongoing new build and rebuild schools programme

Following a year of significant growth in turnover, the focus for the current year is on margin and the quality of earnings rather than volume. The business will prioritise higher value, best fit projects with financially strong clients, secured at improved margins.

SCC Chartered Accountants Ltd were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

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 company’s auditor 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 company’s auditor is aware of that information.

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 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.

We have audited the financial statements of Keylon Interiors Limited (the 'company') for the 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 and 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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.

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

Based on our understanding of the company, we identified the principal risks of non-compliance with laws and regulations related to building and quality regulations and health and safety law. We also considered those laws that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and Financial Reporting Standards.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements and determined that the principal risks related to fraudulent financial reporting and management bias in accounting estimates. We communicated the identified laws and regulations throughout the audit team and remained alert to any indication of non-compliance throughout the audit. Audit procedures performed by the auditors included, but were not limited to:

• Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;

• Reviewing key correspondence with external advisors;

• Challenging assumptions and judgements made by management in their significant accounting estimates, and;

• Identifying and testing unusual entries.

Owing to 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. The risk increases the more that compliance with a law or regulation is removed from the events and transaction reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

The purpose of our audit work and to whom we owe our responsibilities

This report is made solely to the company's members 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 the members 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, for our audit work, for this report, or for the opinions we have formed.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

Keylon Interiors Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 2 Invicta Park, Sandpit Road, Dartford, England, DA1 5BU.

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.

This 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:

• 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 33 'Related Party Disclosures': Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of Keylon Group Ltd (10514459). These consolidated financial statements are available from its registered office, Unit 2 Invicta Park, Sandpit Road, Dartford, England, DA1 5BU.

In 2025, invoice finance charges of £19,550 were included in administrative expenses. In these financial statements they have been reclassified to interest payable and similar expenses so that they are presented consistently with the current year.

The financial statements have been prepared on a going concern basis. The directors have assessed the ability of the company to continue as a going concern for a period of at least twelve months from the date of approval of these financial statements.true

The company made a profit before tax of £21,606 for the year (2025: £1,222,081). This is after a material bad debt charge of £1.22 million. At 31 January 2026 the company had net current assets of £3,146,189 and net assets of £2,513,219. It held cash of £182,903 and had bank and other loans of £837,677.

In making their assessment, the directors have prepared cash flow forecasts for the required period which take into account the secured order book, achievable margins and the repayments required.

As a result, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for at least twelve months from the date of approval of these financial statements. They therefore continue to adopt the going concern basis of accounting.

Turnover is the value of work done on construction contracts during the year, excluding value added tax and trade discounts. It includes the value of work done on contracts not yet invoiced.

Where the outcome of a construction contract can be estimated reliably, contract revenue and costs are recognised by reference to the stage of completion at the reporting date. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of contract costs incurred that are probable of recovery.

Variations and claims are included in contract revenue only when it is probable that the customer will approve them and the amount can be measured reliably.Where it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately.

Amounts recoverable on contracts are included in debtors and represent turnover recognised in excess of amounts invoiced.

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 credited or charged to profit or loss.

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

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.

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.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

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

Financial assets and liabilities are offset, with 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 assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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.

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 and Other Creditors

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.

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

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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Borrowing costs

All borrowing costs are recognised in profit or loss in the period in which they are incurred.

In the application of the company’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.

Bad debt provision

The company makes an estimate of the recoverable value of trade and other debtors. In assessing impairment, management considers the financial position of the customer, the ageing profile of debtors and historical experience. The bad debt provision at 31 January 2026 is £1.2m (2025: £Nil).

Contract revenue and amounts recoverable on contracts

Turnover on contracts in progress is recognised by reference to the stage of completion, based on valuations of work done. This requires estimates of the value of work completed, variations, retentions and the final outcome of each contract.

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

Their aggregate remuneration comprised:

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:

Dividends paid to Keylon Group Ltd during the year amounted to £600,000 (2025: £600,000).

Bank loans of £68,940 (2025: £187,619) are secured by a fixed and floating charge over the assets of the company in favour of Santander UK plc.

Other loans totalling £768,737 (2025: £108,127) are guaranteed by a personal guarantee from the directors.

Ultimate Finance have a charge over the business and 25% personal guarantee from the directors.

There is an amount due for repayment in instalments after five years of £66,174 (2025 - £Nil).

On 11 June 2026 a main contractor client of the company entered administration. The administration provided further evidence of conditions that existed at the reporting date and has therefore been treated as an adjusting event. Amounts due from the client at 31 January 2026 of £1.22m have been provided for in these financial statements. The charge is stated net of the amount expected to be recovered under the company’s trade credit insurance policy.

There have been no other significant events affecting the company since the year end.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

As at 31 January 2026 there was a related party balance of £Nil (2025: £21,541) owed from Shaw Wood Ltd (A company registered in England and Wales, registration number: 13914114). The party is related through common directors.

As at 31 January 2026 there was a related party balance of £308,500 (2025: £308,500) owed from JHKL Investments Ltd (A company registered in England and Wales, registration number: 12709655). The party is related through common directors.

The company regards Keylon Group Limited as its immediate parent company, a company incorporated in England.

The company's ultimate parent undertaking is Keylon Group Limited, a company incorporated in England. The company results are included in the consolidated financial statements of Keylon Group Limited, which is the smallest and largest group of undertakings for which group financial statements are available from Keylon Group Limited Unit 2, Invicta Park, Sandpit Road, Dartford, DA1 5BU.

The ultimate controlling parties are Kyle Hunter and Jonathan Lowe.