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

The principal activity of the Company continued to be that of a UK-based construction contractor operating across a range of public and private sector projects. The Company remains focused on delivering high-quality construction solutions, maintaining strong relationships with clients and supply chain partners, and making a positive contribution to the communities in which it operates.

The year ended 31 March 2026 represented a further period of significant growth and improved financial performance for the Company, following the strategic investment undertaken in previous years.

Turnover increased to £44,357,746 (2025: £35,928,993), representing growth of 23.5%. Gross profit increased to £4,737,201 (2025: £3,060,345), with the gross profit margin improving to 10.7% (2025: 8.5%). Operating profit increased to £1,351,443 (2025: £901,439), an increase of 49.9%, while the operating margin improved to 3.0% (2025: 2.5%). Profit before taxation was £1,350,567 (2025: £922,947)

The Directors consider these results encouraging, demonstrating improved profitability alongside continued growth in activity and investment in the business. Administrative expenses increased to £3,385,758 (2025: £2,158,906), reflecting the larger scale and cost base of the Company. Maintaining disciplined project delivery, cost control and overhead management remains a key priority.

The balance sheet strengthened during the year. Cash at bank and in hand increased to £4,306,971 (2025: £2,832,425), The Directors continue to place particular emphasis on cash generation, working capital and the management of contract balances and retentions.

Investment in People, Systems and Infrastructure

The Company continued to support its growing operations through investment in its people and operating capacity. Average employee numbers increased to 70 (2025: 59), while aggregate staff remuneration, including social security and pension costs, increased to £3,976,252 (2025: £3,386,279).

The Directors remain focused on developing the leadership and management capacity, systems, reporting and operational controls required to support a growing regional construction business. Investment in health, safety and wellbeing, staff development and effective project governance continues to be central to the Company’s long-term approach.

Notable Projects, Frameworks and Industry Recognition

During the year, the Company secured and progressed significant projects across healthcare, education, regeneration and public-sector refurbishment. Notable appointments included the new Liverpool Zoe’s Place children’s hospice, Wirral Met College and Accrington Town Square. These projects reflect the breadth of the Company’s experience and the confidence placed in its teams to deliver complex, community-focused schemes.

The Company also secured places on several regional and national procurement frameworks, further strengthening its market position, widening access to future opportunities and supporting the development of longer-term client relationships. Industry recognition during the period included awards and nominations recognising the business and its people.

Social Value and Community Engagement

The Company remains committed to delivering positive social value and supporting the communities in which it operates. Community engagement and responsible project delivery continue to form an important part of the Company’s values and approach to client relationships. The Directors intend to maintain this commitment as the business develops.

The Company is also working more closely with clients, delivery partners and its supply chain to track, monitor and record social value outcomes more consistently, with a focus on evidencing the tangible benefits generated through its projects.

The Directors have identified the following principal risks:

· Credit risk

· Liquidity risk

· Inflation and market fluctuations

· Cash flow risk

These risks are monitored and managed through careful client selection, a focus on repeat business and public sector opportunities, established supply chain relationships, financial controls and regular cash flow monitoring. Given the growth in turnover, particular attention is paid to contract valuations, recovery of debtors and retentions, forecasting of final contract outcomes, and the timing of payments to the supply chain.

The Directors also recognise risks associated with programme delivery, quality, health and safety, supply chain capacity and skilled labour availability. These are addressed through project reviews, operational oversight, procurement planning and ongoing engagement with delivery partners.

During the year, the Company refined its methodology for estimating revenue and profit on incomplete construction contracts, using contract valuation reports and forecasts of final contract revenues and costs. As explained in judgements and key estimates section, this has been treated as a change in accounting estimate and applied prospectively.

Managing Director’s Statement

I am pleased to report another strong year for Krol Corlett Construction Limited, characterised by continued growth, improved profitability and further development of the business.

Turnover increased to £44.4 million, representing growth of 23.5% over the previous year. More importantly, this growth was accompanied by improved gross and operating margins, with operating profit increasing to £1.35 million. These results reflect the commitment of our people and the ongoing focus on delivering projects effectively while developing a stronger and more resilient business.

The investments made in leadership, people, systems and infrastructure have been important in supporting the Company’s development. Our average workforce increased to 70 during the year, and we remain committed to providing our teams with the support, training and working environment required to deliver for our clients.

I am also encouraged by the improvement in our financial position. Cash balances increased to £4.31 million and net assets rose to £1.17 million. As the scale and complexity of our operations increase, disciplined commercial management, project selection, robust cash flow forecasting, quality, safety and programme performance remain essential priorities.

Our people and our values remain at the heart of Krol Corlett Construction. We continue to recognise the importance of long-term relationships with staff, clients and supply chain partners and the positive contribution our projects can make to local communities.

Our growing portfolio, including the Liverpool Zoe’s Place hospice, education projects and town-centre regeneration schemes, demonstrates the breadth of our capabilities. Our positions on several regional and national frameworks strengthen our platform for future opportunities. Alongside this, we are working with partners to improve the way we track, monitor and record social value outcomes, ensuring that our contribution to communities is increasingly measurable and transparent.

Looking ahead, the Company enters the next financial year with a strong secured order book. Secured turnover for the financial year ending 31 March 2027 is already in excess of the Company’s £47 million target. In addition, the combined secured, probable and possible workload currently identified for the financial year ending 31 March 2028 represents more than 50% of the Company’s turnover target for that year. While probable and possible opportunities remain subject to conversion into contracted work, this visibility provides a positive foundation for future planning and continued sustainable growth. Our priority remains to convert opportunities selectively, protect margins, strengthen operational accountability and maintain effective financial and risk controls.

I would like to thank our employees, clients and supply chain partners for their continued hard work, trust and support.

On behalf of the board

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

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £699,279. 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 auditor, DSG Audit, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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; and

• 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.

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.

We have audited the financial statements of Krol Corlett Construction Limited (the 'company') for the year ended 31 March 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 significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 March 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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

• adequate accounting records have not been kept, 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.

Discussions were held with, and enquiries made of, management and those charged with governance with a view to

identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity. 

The following laws and regulations were identified as being of significance to the entity:

• Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation.

• It is considered that there are no laws and regulations for which non-compliance may be fundamental to the operating aspects of the business.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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

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

Krol Corlett Construction Limited is a private company limited by shares incorporated in England and Wales. The registered office is Morgan Brightside Building, Bradman Road, Knowsley Industrial Park, Knowsley, Merseyside, United Kingdom, L33 7UR.

The company's registration number is: 05974400.

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.

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

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

The financial statements of the company are consolidated in the financial statements of Krol Corlett Construction Group Limited. These consolidated financial statements are available from its registered office, Morgan Brightside Building Bradman Road, Knowsley Industrial Park, Knowsley, Merseyside, L33 7UR.

The financial statements have been prepared on a going concern basis. The directors have reviewed the company's financial position, including its cash flow forecasts and available funding facilities, and have assessed the company's ability to continue in operational existence for a period of at least twelve months from the date of approval of these financial statements.true

Based on this assessment, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence and to meet its liabilities as they fall due. Accordingly, they continue to adopt the going concern basis of accounting in preparing the financial statements.

Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.

When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.

For construction contracts satisfied over time, revenue and profit are recognised by reference to the stage of completion at the reporting date. The assessment of stage of completion incorporates estimates of contract revenues, contract costs and contract profitability. Revenue and profit are recognised only to the extent that they are considered recoverable and can be measured reliably.

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

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

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

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

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.

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 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 company 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 company.

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 company’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 when the company has 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.

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

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

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

New or revised standards

Amendments to FRS 102 issued in September 2024 will apply to the company for accounting periods commencing on or after 1 January 2026. These amendments include significant changes to lease accounting, together with additional disclosure requirements. The directors are currently assessing the impact of these amendments on the company’s future financial statements.

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.

During the year, the company refined the methodology used to estimate revenue and profit recognised on incomplete contracts.

Previously, work in progress was determined primarily by reference to invoices raised subsequent to the year end relating to pre-year-end work, together with adjustments to reflect expected contract profitability.

The company now utilises contract valuation reports, forecast final contract revenues and forecast final contract costs to assess the stage of completion and profitability of individual contracts.

The directors consider that the revised methodology provides a more reliable estimate of contract performance and accordingly represents a change in accounting estimate rather than a change in accounting policy.

In accordance with FRS 102, the effect of the change has been recognised prospectively.

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:

The net book value of tangible fixed assets includes £175,840 (2025 - £245,550) in respect of assets held under hire purchase contracts.

Included within other debtors are retention balances of £1,661,756 (2025: £1,184,554), recoverable in accordance with contractual terms.

Reclassification of comparative balances

During the year, the directors reviewed the presentation of work in progress arising from construction contracts.

It was concluded that amounts previously included within stocks represent contract balances more appropriately classified within debtors. Accordingly, comparative figures have been reclassified to conform with the current year presentation.

The reclassification had no impact on profit for the year, net assets or cash flows.

The effect of the reclassification on the comparative balance sheet is as follows (2025):

Decrease in stocks (£2,718,681)

Increase in debtors £2,718,681

Other creditors include retention balances of £1,526,638 (2025: £1,230,080) held in respect of construction contracts.

Included within loans is a CBILS term loan due to Barclays Bank PLC which is repayable within one year of the balance sheet date.

Finance lease payments represent rentals payable by the company for certain motor vehicles. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

The obligations under the finance leases are secured on the items to which the finance leases relate.

The following are the major deferred tax liabilities and assets recognised by the company:

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.

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

Secured bank borrowings are secured by a debenture dated 26 July 2011 in favour of Barclays Bank PLC, comprising fixed and floating charges over the company's assets and undertaking, and a guarantee and debenture dated 23 August 2016 in favour of Barclays Bank PLC, comprising fixed and floating charges over the company's assets and undertaking together with cross-guarantees between group companies.

At 31 March 2026, cumulative costs of £372,439 were included within work in progress in relation to a residential property being constructed for a director. The company expects to recover the costs incurred in accordance with the agreed commercial arrangements. The transaction was undertaken on normal commercial terms.

Included within other debtors is an amount of £540,247 (2025 - £587,586) owed from related parties which have common directors and shareholders.

Included with other creditors is an amount of £41,657 (2025 - £42,693) owed to related parties which have common directors and shareholders.

Within the profit and loss account, management charge of £0 (2025 - £30,000) were expenses charged by a related party which have common directors and shareholders.

The company has taken advantage of the exemption contained within FRS 102 Section 33 and has therefore not disclosed transactions or balances with wholly owned members of the group.

The company is a wholly owned subsidiary of Krol Corlett Construction Group Limited, a company incorporated in England and Wales.

Krol Corlett Construction Group Limited is both the smallest and largest group undertaking for which consolidated financial statements are prepared that include the company.

The ultimate controlling parties are the directors, who exercise control through their shareholdings in Krol Corlett Construction Group Limited.