The directors present the strategic report for the group for the year ended 31 January 2026.
The principal activity of the group 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 increased by 54% to £29.9m (2025: £19.4m). 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 group’s five year strategic plan.
Profit before tax for the year was £46,145 (2025: £1,239,167). The reduction is due to a material 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 group’s trade credit insurance policy.
Before this charge, operating profit was £1.49m (2025: £1.30m). Gross margin was 11.5% (2025: 16.2%). 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 69.2% to £3.1m and increased as a share of turnover to 10.2% from 9.3%.
Cash at bank at the year end was £0.40m (2025: £0.80m).
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 emphasis remains on the successful delivery of existing contracts, strengthening relationships with existing clients and adding projects from a number of target clients. Growth will come from residential schemes outside of London, large scale social regeneration and social housing, the schools programme, and diversification into other growing sectors. There are plans in place to establish a presence in target regions to further promote expansion into growth areas which will be realised in the coming 12 months.
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 group’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 housebuyer 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 group 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 54.0% -4.5%
Gross Profit Margin 11.1% 16.0%
Operating profit £273,075 £1,299,225
Net Profit Margin 0.1% 4.1%
Cash at bank £396,227 £797,117
Shareholders Equity £4,242,875 £4,548,782
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 group’s most important resource is its people. Their experience, knowledge and relationships are crucial to the group’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 Group 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 Group 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 Group 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 group 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 group 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 group 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 the group are the most valuable resource of the group 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 group pays suppliers in line with commercially agreed payment terms.
Community & Environment
We recognise the important role the group 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 group has appointed relevant expert advisers so that the board is aware of, and the group 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 results for the year are set out on page 11.
Ordinary dividends were paid amounting to £340,000 (2025; £340,000). The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The group’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 group’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 group 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 group 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 group 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 group’s monthly management reporting.
The group’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 group 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 group 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 group since the year end.
The group 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.
United Kingdom company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have 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 directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and parent company, and of the profit or loss of the group for that period.
In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable 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 directors are 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. They are 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.
In accordance with Section 414C (11) of Companies Act 2006, the directors have elected to disclose details of the business review, principal risks and uncertainties, employment policy and future developments in the Strategic Report which would otherwise be required to be disclosed in the Directors' Report.
We have audited the financial statements of Keylon Group 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 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).
Basis for opinion
Emphasis of matter
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Based on our understanding of the group, 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 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.
The purpose of our audit work and to whom we owe our responsibilities
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.
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 £600,000 (2025 - £600,000 profit).
Keylon Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit 2 Invicta Park, Sandpit Road, Dartford, DA1 5BU.
The group consists of Keylon Group 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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The consolidated group financial statements consist of the financial statements of the parent company Keylon Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 January 2026. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
The financial statements have been prepared on a going concern basis. The directors have assessed the ability of the group and the parent company to continue as a going concern for a period of at least twelve months from the date of approval of these financial statements.
The group made a profit before tax of £46,145 for the year (2025: £1,239,167, as restated). This is after a bad debt charge of £1.22 million. At 31 January 2026 the group had net current assets of £4,875,845 and net assets of £4,242,875. It held cash of £396,227 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.
The parent company has guaranteed the liabilities of its subsidiary Pines Carpentry Ltd at 31 January 2026 under section 479C of the Companies Act 2006. The directors have taken this guarantee into account and do not expect it to give rise to any outflow.
On this basis, the directors have a reasonable expectation that the group and the parent company have 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.
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.
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.
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.
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.
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.
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.
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.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
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).
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 group and 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:
Details of the company's subsidiaries at 31 January 2026 are as follows:
Pines Carpentry Ltd (company number 11825370) is exempt from the requirements of the Companies Act 2006 relating to the audit of individual accounts by virtue of section 479A. Keylon Group Limited has guaranteed the liabilities of Pines Carpentry Ltd at 31 January 2026 under section 479C.
Bank loans of £68,940 (2025: £186,760) 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).
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.
At 31 January 2026 the group owed a balance of £227,808 to the directors (2025: £143,463). This balance is deemed to be interest free, unsecured and payable on demand.
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 directors are regarded to be the key management personnel.
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 group since the year end.
The ultimate controlling party is deemed to be Mr Kyle Hunter & Mr Jonathan Lowe as they own 50% each of the ordinary share capital of the company.
Keylon Group Limited has guaranteed the liabilities of Pines Carpentry Ltd at 31 January 2026 of £842,036 under section 479C of the Companies Act 2006.
Pines Carpentry Ltd (company number 11825370) has been a wholly owned subsidiary of Keylon Group Limited since 1 December 2021. It was not included in the consolidated financial statements for prior periods. This was an error. The comparative figures have been restated to consolidate Pines Carpentry Ltd from the date of acquisition, under section 10 of FRS 102.
Pines Carpentry Ltd was acquired for consideration of £1. Its identifiable net assets at acquisition were all monetary. Its full effect is therefore included in the restated reserves at 1 February 2024. The correction has no effect on the parent company’s individual financial statements, other than reclassifying the £1 cost of investment from debtors to fixed asset investments.
Effect on the group balance sheet at 1 February 2024
As previously reported £ Adjustment £ As restated £
Profit and loss reserves 3,669,582 417,334 4,086,916
Total equity 3,669,784 417,334 4,087,118
Effect on the group profit and loss account for the year ended 31 January 2025
As previously reported £ Adjustment £ As restated £
Turnover 18,078,375 1,345,385 19,423,760
Cost of sales (15,176,231) (1,139,514) (16,315,745)
Gross profit 2,902,144 205,871 3,108,015
Administrative expenses (1,639,555) (169,235) (1,808,790)
Operating profit 1,262,589 36,636 1,299,225
Interest payable and similar expenses (46,929) (19,550) (66,479)
Profit before taxation 1,222,081 17,086 1,239,167
Tax on profit (433,728) (3,775) (437,503)
Profit for the financial year 788,353 13,311 801,664
Effect on the group balance sheet at 31 January 2025
As previously reported £ Adjustment £ As restated £
Debtors 6,173,671 892,594 7,066,265
Cash at bank and in hand 776,481 20,636 797,117
Creditors: falling due within one year (2,698,081) (482,585) (3,180,666)
Net current assets 4,252,071 430,645 4,682,716
Net assets 4,118,137 430,645 4,548,782
Profit and loss reserves 4,117,935 430,645 4,548,580
Total equity 4,118,137 430,645 4,548,782
Effect on the group statement of cash flows for the year ended 31 January 2025
As previously reported £ Adjustment £ As restated £
Net cash from operating activities 348,914 62,636 411,550
Net cash from/(used in) investing activities 6,421 (42,000) (35,579)
Net cash used in financing activities (499,064) – (499,064)
Net decrease in cash and cash equivalents (143,729) 20,636 (123,093)
Cash and cash equivalents at end of year 772,085 20,636 792,721
The comparative figures in the related notes to the accounts have been restated to match.