The director presents the strategic report for the year ended 31 January 2026.

The financial position of the group at the period end was considered satisfactory in the circumstances by the director. Following a movement in sales revenue in the subsidiary companies, the group returned a gross profit margin in line with expectations, which in turn led to a profit before taxation of £8,254,264 (2025: £5,285,495).

Key Highlights:

Leonari Limited is the group’s principal trading subsidiary. Its strong financial performance during the year materially contributed to the group’s overall growth and success.

• Growth Achievement: We have experienced solid growth, with turnover reaching £43.5 million, marking a significant increase from £30.9 million in 2025. This growth has been achieved without compromising the quality of our services and project delivery.

• Sustainable Expansion: Our strategic growth review emphasises the importance of competent personnel and healthy cash reserves, both of which have continued to grow each year.

• Key Recruitment: We have successfully filled critical roles to support our expanding operations and align with the profiles of the projects we are securing.

• Staff Retention Focus: Our commitment to retaining staff is paramount. We aim to further recruit individuals who fit our group culture, driving our growth forward.

• Supply Chain Resilience: We are strengthening our supply chain by engaging new subcontractors that match the needs of our projects, ensuring a robust and resilient network.

• Client Diversification: To mitigate financial risks, we actively pursue new key clients annually, ensuring a spread of turnover across multiple clients.

• Industry Recognition: Achieving “Platinum” status in Constructionline highlights our commitment to the highest standards in Corporate Social Responsibility, Quality Management, Environmental Management, Equal Opportunities and Health & Safety.

Property investments

• The group's surplus cash has been applied to investments in financial markets and property-backed finance, relating to both commercial and residential properties across the UK and Europe.

• The group’s strategy is centred on sustainable growth through careful asset selection, value enhancement, and prudent financial management. Where appropriate, the group has made suitable provisions to reflect current market conditions.

• A further aim is to acquire a property portfolio included in or associated with the group with a number of potential property investments in the pipeline.

The group recognises several key risks inherent in the operations of Leonari Limited. These risks, along with the corresponding mitigation strategies, are outlined below:

• Client Financial Stability: The risk of main contractors or clients entering administration is heightened. We mitigate this by conducting thorough due diligence on key clients before contracts are signed and spreading turnover across multiple clients.

• Project Performance Monitoring: Weekly reviews of operational performance ensure that project milestones are met and specific risks related to design, quality, and delivery timelines are addressed.

• Supply Chain Quality: The performance of our supply chain is assessed regularly, with strong relationships maintained to enable productive adjustments based on feedback.

• Health & Safety Management: Ongoing health and safety risks are mitigated through regular independent audits and adherence to a detailed Health & Safety policy.

• Financial Monitoring: Monthly financial reports for each project ensure alignment with cost plans and timely identification of changes.

Property investments

• The principal risks and uncertainties facing the business in 2025-26 arise from continued volatility in interest rates, inflationary pressures affecting construction and financing costs, and fluctuating property valuations in both the UK and European markets. In addition, political and economic instability within Europe, coupled with evolving regulatory environments, may impact investment yields and development timelines. Despite these challenges, the group remains well-positioned through its diversified portfolio, conservative gearing, and disciplined investment approach aimed at delivering long term value and stability.

Results and Performance Including Key Performance Indicators

Group Financial Overview:

• Organic Growth: Our turnover has increased organically, driven by larger project sizes. We have maintained similar profit margins, indicating that the organisational changes from 2025 have introduced greater stability and control.

• Cash Reserves: Our cash in bank remains healthy, supporting our operational capabilities and future investments.

• Net Assets: Further details of the strong contributions to the group's net assets are provided in the financial statements.

The group monitors the following key performance indicators to assess the operational effectiveness and strategic progress of Leonari Limited:

• Health & Safety (H&S): We emphasise strict H&S protocols to ensure a safe construction environment, monitoring performance through audits and reviews.

• Tenders & Preconstruction: Our focus is on the accuracy and efficiency of our tendering process, ensuring compliance and honesty in our bids. Projects secured in the last quarter indicate strong future turnover potential.

• Quality Assurance: We are working towards ISO accreditation to underline our commitment to quality, directly influencing client satisfaction and operational efficiency.

• Project Performance Tracking: Our reporting captures essential metrics such as time, labour, materials, and costs, facilitating resource allocation and adherence to budgets.

• Employee Performance: We monitor employee performance through development plans, enhancing productivity and project execution quality.

• Cash Flow Management: We prioritise cash flow monitoring on key projects, ensuring financial stability and project profitability.

Property Investments

• The group monitors the security on the loans through a range of financial and operational indicators, with particular focus on portfolio value growth, rental income yield, and operating profit margins. During the year, UK property values have overall remained resilient despite market fluctuations, supported by current demand and careful asset management. The board continues to assess the loan recoverability against the property portfolio performance regularly to ensure that the risks are managed.

This strategic report outlines our robust position in the market and our commitment to sustainable growth while proactively managing risks and enhancing our operational capabilities. We look forward to continuing this trajectory in the coming year.

On behalf of the board

The director presents his annual report and financial statements for the year ended 31 January 2026.

The principal activity of the group continued to be that of specialised construction services and investment activities.

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

Ordinary dividends were paid amounting to £4,648,770. The director does not recommend payment of a further dividend.

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

In accordance with the company's articles, a resolution proposing that Richard Anthony be reappointed as auditor of the group will be put at a General Meeting.

The group did not consume more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

United Kingdom company law requires the director to prepare financial statements for each financial year. Under that law, the director has elected to prepare the group and parent company financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and parent company, and of the profit or loss of the group for that period.

In preparing these financial statements, the director is required to:

• select suitable accounting policies and then apply them consistently;

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

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

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

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

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 group 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 group is aware of that information.

We have audited the financial statements of Vigos Enterprises Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2026 which comprise the group profit and loss account, 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, the company 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 director's 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 director 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 director is 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 director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• The strategic report and the director's report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the group, 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 director's 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 director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the parent company or to cease operations, or has 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.

Risk identified:

Based on our understanding of the group and industry, we identified the principal risk to the audit as follows:

• Management override of control;

• Revenue recognition and the related estimation;

• Estimation in the project costs;

• Identification and disclosure of related party transactions;

• Recoverability of the related parties receivable balances.

Audit response:

We focussed on those areas that could give rise to a material misstatement in the group financial statements. Our procedures included but were not limited to:

• Enquired of management and those charged with governance regarding litigation, claims, fraud, and compliance with laws and regulations;

• Considered legal expenditure incurred during the year for indicators of potential disputes, fraud or non-compliance;

• Reviewed minutes of meetings of those charged with governance for matters relevant to the financial statements, where available;

• Assessed the adequacy and appropriateness of disclosures in the financial statements;

• Assessed the reasonableness of forecast margins on significant contracts by reference to information available before and after the year end;

• Evaluated key assumptions used by management, including the recoverability of contract variations and retentions;

• Reviewed completed contracts to assess the reliability of management’s estimates and identify any indications of bias;

• Reviewed journals and other adjustments to address the risk of management override of controls;

• Reviewed related party transactions to assess their commercial rationale, recoverability and the adequacy of related disclosures.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

The group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant:

• The Companies Act 2006

• Financial Reporting Standard 102

• UK tax legislation    

• UK employment legislation

• UK health and safety legislation

• General Data Protection Regulations

• Construction (Design and Management) Regulations 2015

• Building Regulations Compliance

We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

We understood how the group is complying with those legal and regulatory frameworks by making inquiries of management and those responsible for legal and compliance procedures.

The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with these laws and regulations. The assessment did not identify any issues in this area.

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

• Identifying and assessing the measures management has in place to prevent and detect fraud,

• Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process,

• We addressed the risk of fraud through management override of control by testing the appropriateness of transactions and other adjustments. Assessing whether the judgments made in making accounting estimates are indicative of a potential bias and evaluating the business rationale of any significant transaction that are unusual or outside normal course of business.

As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential existed within the recording and recognition of revenue earned from construction contracts, estimations involved within and controls exercised over the recognition of revenue and related contract costs.

Due 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 regulations. 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. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach. The risk is also greater regarding irregularities occurring to fraud other than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation.

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.

Use of our report

This report is made solely to the parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

The consolidated profit includes £1,312,866 (2025: £788,176) attributable to non controlling interests, representing their share in the results of subsidiaries not wholly owned by the group. Non controlling interests in the current year includes additional dividends approved by the board representing a higher percentage than their shareholdings.

As permitted by section 408 of the 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 £5,010,887 (2025 - £3,027,847 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

Vigos Enterprises Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 3rd Floor, New Hibernia House, Winchester Walk, London, SE1 9AG.

The group consists of Vigos Enterprises Limited and all of its subsidiaries.

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.

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 Vigos Enterprises 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.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

As at the balance sheet date, the group reported net assets of £13.5 million (2025: £12.6 million), reflecting a year-on-year increase of 7%, driven by sustained profitability and disciplined financial management. Cash reserves remained strong at £10.4 million (2025: £8 million), providing the group with strategic flexibility and resilience in navigating market conditions. Profit before tax for the year was £8.3 million (2025: £5.3 million), marking a 57% uplift and underscoring the group’s ability to deliver consistent returns and long term shareholder value.

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

Group revenue arises from the performance of construction contracts. Where the outcome of a construction contract can be estimated reliably and it is probable that the contract will be profitable, revenue and costs are recognised by reference to the stage of completion of the contract activity at the balance sheet date. Stage of completion is assessed by reference to the proportion of the contract costs incurred for the work performed to date relative to the estimated total costs, except where this would not be representative of the stage of completion. The attributable profit is recognised in profit and loss as the difference between the reported turnover and related costs for that contract.

When it is considered probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately.

Variations and claims are included in revenue where it is considered probable that the amount, which can be measured reliably, will be recovered from the customer.

When the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is considered likely that those costs will be recoverable.

Contract costs are recognised as expenses in the period in which they are incurred.

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, associates and jointly controlled entities 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.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

At each reporting period end date, the group 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. 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.

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 group 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 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 assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group 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 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.

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

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.

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.

In the application of the group’s accounting policies, the director is 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 following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements of Leonari Limited.

Leonari Limited recognises revenue from construction contracts using the percentage of completion method, in accordance with applicable accounting standards. This method requires management to estimate the proportion of work completed to date relative to the total contract value.

The stage of completion is primarily determined based on valuations certified by independent quantity surveyor, providing an objective and reliable measure of progress. Revenue and profit are recognised accordingly, based on the estimated stage of completion.

This approach involves judgement, particularly in estimating future costs and margins. These estimates are reviewed and updated regularly as the contract progresses. Any changes in estimates may result in adjustments to revenue and cost of sales in the period in which the revisions are made. The directors have recognised a contingency cost of £1,687,458 (2025: £470,866) following a review of all ongoing projects at the year end date.

The directors have reviewed the status of all ongoing contracts as at 31 January 2026 and up to the date of signing the financial statements. They remain confident that the forecasted levels of profitability will be maintained through to contract completion.

In forming this view, the directors considered the accuracy of previous contract forecasts in recent years. With the exception of one specific contract, actual profitability has consistently met or exceeded initial estimates during the pre-completion phases. This track record supports the view that the company applies a prudent and reliable approach to estimating contract profitability.

Retention amounts due from customers under long term construction contracts are included within trade receivables of Leonari Limited. As at the balance sheet date, an amount of £1,648,662 (2025: £1,349,576) retention debtor has been recognised. These balances are subject to regular review by the directors to assess their recoverability.

At the year end, the financial statements of Leonari Limited included a retention creditor of £1,524,729 (2025: £1,124,339). The directors assess retention creditor balances alongside corresponding retention debtor balances to ensure that the retention amounts are fairly stated and appropriately presented in the financial statements.

While all retention amounts recognised at the reporting date are considered recoverable, their collection is subject to a degree of judgement, particularly regarding the financial position and payment practices of the customer.

Research and development tax credit

Leonari Limited has previously claimed Research and Development tax relief for small and medium sized enterprises through its corporation tax returns. Leonari Limited has recognised an estimated research and development tax credit of £627,013 (2025: £327,476) based on management's assessment of eligible historic expenditures.

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

Their aggregate remuneration comprised:

Payroll services were provided by Leonari Limited, and facilitate the payments of directors' remuneration.

During the year, the directors undertook a review of the recoverability of amounts due from connected companies. Following this review, an amount of £250,000 owed by a connected company was considered irrecoverable due to the financial position and the absence of a reasonable expectation of recovery. Accordingly, the balance has been written off and recognised as an expense in the profit and loss account during the year.

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:

As at balance sheet date, the parent company of the group recognised a dividend payable of £4,648,770 (2025: £200,000) to its shareholder. The dividend was declared on 30 January 2026 and is expected to be settled within twelve months.

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

Included within other debtors are amounts owed by companies in which S Londos is also director and shareholder. The director has assessed the recoverability of amounts due from related parties by reference to the net asset positions, underlying property and investment assets and expected cash generation. Based on this assessment, the director is satisfied that the balances are recoverable.

Current asset investments comprise listed securities held for investment purposes by Bullion Investments Limited. These investments are measured at fair value at the reporting date by reference to quoted market prices.

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

The dividend declared during the year was approved after consideration of the group's profitability, cash position and future funding requirements. The director is satisfied that sufficient distributable reserves remain available and that the payment of the dividend does not adversely affect the group's ability to meet their obligations as they fall due.

Included within other debtors, following amounts were owed to Vigos Enterprises Limited by the companies below, in which S Londos is also a director and shareholder:

The amounts owed by the related companies are unsecured, interest free and repayable on demand.

As at the balance sheet date, the group owed an amount of £37 (2025: £172,837) to S Londos, and an amount of £1,006,657 (2025: £633,582) to J Cunningham, a director of Leonari Limited. These balances are unsecured, interest free and repayable on demand.

S Londos is the ultimate controlling party by virtue of his directorship and shareholding in Vigos Enterprises Limited.