REGISTERED NUMBER: 02577303 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

FOR

PHOENIX SURFACING LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

8

Statement of Financial Position

9

Statement of Changes in Equity

10

Statement of Cash Flows

11

Notes to the Statement of Cash Flows

12

Notes to the Financial Statements

13

DIRECTORS:

Mr J W Atherton-Ham

Mr M L Butler

Mr T K Greasley

Mr J S Haluch

Mr P E Knighton

Mr A S Lauder

Mr T Taylor

SECRETARY:

Mrs L A Coxon

REGISTERED OFFICE:

12 Henson Close

Telford Way Industrial Estate

Kettering

Northamptonshire

NN16 8PZ

REGISTERED NUMBER:

02577303 (England and Wales)

AUDITORS:

Cube Partners Limited

Chartered Accountants and Registered Auditors

5 Giffard Court

Millbrook Close

Northampton

Northamptonshire

NN5 5JF

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

REVIEW OF BUSINESS

The results for the year and financial position of the company are detailed on the annexed accounts.

Turnover for year ended 31 March 2026 remained steady against the previous year at £24,992,599 (2025: 25,001,392).

Global events continued to affect material pricing and the outlook for the industry during the year. For the road surfacing and civil engineering division, however, operational improvements and a greater proportion of more complex work led to an increase in gross profit margins to 27% (2025: 24%).

By winning more commercial work, the roofing products division held its performance against the previous year despite wider market deterioration.

The traffic management division had another strong year with consistent activity levels even during the traditionally quieter winter months.

The business continued to focus on operational improvements, and the use of improved systems, ensuring that we continue to provide the best possible service to customers.

The net profit before tax of £1,351,830 (2025: £1,173,626) represented an improved 5.4% (2025: 4.7%) return on sales.

PRINCIPAL RISKS AND UNCERTAINTIES

Towards the end of the year material and transportation costs were affected by the conflict in the Middle East. This ongoing instability impacted both the surfacing and roofing divisions. The Company maintains close relationships with suppliers and customers ensuring that wherever possible cost increases are agreed and mitigated.

Local economic and political uncertainty continues to impact some markets, including house building, but the diversity of the Company's client base offers some hedging.

Given the increase in construction industry business failures, increased credit checking and vigilant debt collection procedures continue.

Theft of and damage to equipment and vehicles remains a significant concern. The Company continues to utilise enhanced security measures and tracking systems.

FUTURE DEVELOPMENTS

The company monitors developing technologies, identifying and implementing those which enable us to meet sustainability obligations and continue to work safely and productively. Increasingly, we utilise electric vehicles where appropriate in the fleet.

ON BEHALF OF THE BOARD:

Mr T K Greasley - Director

3 November 2026

The directors present their report with the financial statements of the company for the year ended 31 March 2026.

PRINCIPAL ACTIVITIES

The principal activities of the company in the year under review were those of surfacing subcontractors and the merchanting of bituminous products.

DIVIDENDS

Interim dividends per share were paid as follows:

A Ordinary £1 shares

2.22

- 4 December 2025

B Ordinary £1 shares

2.22

- 4 December 2025

The directors recommend that no final dividends be paid.

The total distribution of dividends for the year ended 31 March 2026 will be £ 444,000 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2025 to the date of this report.

Mr J W Atherton-Ham

Mr M L Butler

Mr T K Greasley

Mr J S Haluch

Mr P E Knighton

Mr A S Lauder

Mr T Taylor

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Cube Partners Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr T K Greasley - Director

3 November 2026

Opinion

We have audited the financial statements of Phoenix Surfacing Limited (the 'company') for the year ended 31 March 2026 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

We considered the central laws and regulations and identified those of significance to the entity. The significant laws and regulations include waste management, health and safety, employment laws and UK tax laws.

We undertook an enquiry of management and those charged with governance to evaluate those of significance and any instances of non-compliance, or any instances of actual or potential fraud in the year.

The audit team remained vigilant throughout the audit for any evidence of non-compliance or fraud.

Through discussion, and where appropriate, written representations, we obtained an understanding of the entity’s policies and procedures on fraud risks, including knowledge of any actual, suspected or alleged fraud.

Where necessary documentation scrutiny was used to determine the significance of any instances of non-compliance of central laws and regulations or fraud.

We communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

The risk of management override of controls and understatement of revenue were identified to have the greatest risk of material misstatement from irregularities, including fraud, on the financial statements.

Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of regularities, sample testing on the posting of journals, reviewing of regulatory correspondence and professional fees, detailed substantive testing on the completeness of income, and reviewing accounting estimates for biases.

Because of 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. 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. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Use of our report

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

Rachel Markus ACA (Senior Statutory Auditor)

for and on behalf of Cube Partners Limited

Chartered Accountants and Registered Auditors

5 Giffard Court

Millbrook Close

Northampton

Northamptonshire

NN5 5JF

4 November 2026

TURNOVER

3

24,992,599

25,001,392

Cost of sales

18,254,123

18,976,486

GROSS PROFIT

6,738,476

6,024,906

Administrative expenses

5,394,375

4,993,753

1,344,101

1,031,153

Other operating income

250

138,635

OPERATING PROFIT

5

1,344,351

1,169,788

Interest receivable and similar income

14,874

11,860

1,359,225

1,181,648

Interest payable and similar expenses

6

7,394

8,022

PROFIT BEFORE TAXATION

1,351,831

1,173,626

Tax on profit

7

357,340

285,797

PROFIT FOR THE FINANCIAL YEAR

994,491

887,829

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

994,491

887,829

FIXED ASSETS

Tangible assets

9

2,305,075

2,169,438

Investments

10

-

-

2,305,075

2,169,438

CURRENT ASSETS

Stocks

11

547,868

277,230

Debtors

12

3,875,960

4,384,964

Cash at bank and in hand

3,335,743

2,432,912

7,759,571

7,095,106

CREDITORS

Amounts falling due within one year

13

3,935,884

3,710,269

NET CURRENT ASSETS

3,823,687

3,384,837

TOTAL ASSETS LESS CURRENT LIABILITIES

6,128,762

5,554,275

PROVISIONS FOR LIABILITIES

16

514,373

490,377

NET ASSETS

5,614,389

5,063,898

CAPITAL AND RESERVES

Called up share capital

17

200,000

200,000

Share premium

18

220,000

220,000

Retained earnings

18

5,194,389

4,643,898

SHAREHOLDERS' FUNDS

5,614,389

5,063,898

The financial statements were approved by the Board of Directors and authorised for issue on 3 November 2026 and were signed on its behalf by:

Mr T K Greasley - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 April 2024

200,000

3,756,069

220,000

4,176,069

Changes in equity

Total comprehensive income

-

887,829

-

887,829

Balance at 31 March 2025

200,000

4,643,898

220,000

5,063,898

Changes in equity

Dividends

-

(444,000

)

-

(444,000

)

Total comprehensive income

-

994,491

-

994,491

Balance at 31 March 2026

200,000

5,194,389

220,000

5,614,389

Cash flows from operating activities

Cash generated from operations

1

2,943,448

1,217,028

Interest paid

(4,081

)

-

Interest element of hire purchase payments paid

(3,313

)

(8,022

)

Tax paid

(355,424

)

(194,765

)

Net cash from operating activities

2,580,630

1,014,241

Cash flows from investing activities

Purchase of tangible fixed assets

(1,307,266

)

(1,322,192

)

Sale of tangible fixed assets

55,731

268,757

Interest received

14,874

11,860

Net cash from investing activities

(1,236,661

)

(1,041,575

)

Cash flows from financing activities

Capital repayments in year

(51,547

)

(129,522

)

Change in amounts owed to group company

59,493

797,778

Change in amount due from group

(5,084

)

1,212

Equity dividends paid

(444,000

)

-

Net cash from financing activities

(441,138

)

669,468

Increase in cash and cash equivalents

902,831

642,134

Cash and cash equivalents at beginning of year

2

2,432,912

1,790,778

Cash and cash equivalents at end of year

2

3,335,743

2,432,912

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2026

2025

£

£

Profit before taxation

1,351,831

1,173,626

Depreciation charges

1,117,937

1,062,159

Profit on disposal of fixed assets

(2,039

)

(53,866

)

Finance costs

7,394

8,022

Finance income

(14,874

)

(11,860

)

2,460,249

2,178,081

Increase in stocks

(270,638

)

(99,188

)

Decrease/(increase) in trade and other debtors

514,088

(136,864

)

Increase/(decrease) in trade and other creditors

239,749

(725,001

)

Cash generated from operations

2,943,448

1,217,028

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 March 2026

31.3.26

1.4.25

£

£

Cash and cash equivalents

3,335,743

2,432,912

Year ended 31 March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

2,432,912

1,790,778

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.25

Cash flow

At 31.3.26

£

£

£

Net cash

Cash at bank and in hand

2,432,912

902,831

3,335,743

2,432,912

902,831

3,335,743

Debt

Finance leases

(51,547

)

51,547

-

(51,547

)

51,547

-

Total

2,381,365

954,378

3,335,743

1.	STATUTORY INFORMATION

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

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Preparation of consolidated financial statements

The financial statements contain information about Phoenix Surfacing Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Breedon Group PLC, Pinnacle House, Breedon Quarry, Breedon On The Hill, Derby, DE73 8AP.

Significant judgements and estimates

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 and, where applicable, future periods.

The directors have not identified any significant judgements in applying the company's accounting policies that have a material effect on the financial statements.

The principal sources of estimation uncertainty are as follows:

Long-term contracts

Revenue and attributable profit on long-term contracts are recognised by reference to the stage of completion at the reporting date. This requires management to estimate the total contract revenue, expected costs to complete each contract and the stage of completion. These estimates are reviewed regularly throughout the life of each contract and are revised as appropriate. Changes in these estimates may affect the revenue, profit and contract balances recognised in the financial statements.

Useful economic lives of tangible fixed assets

The company reviews the useful economic lives and residual values of its plant, machinery and motor vehicles at each reporting date. Changes in these estimates would affect the depreciation charge recognised in the current and future accounting periods.

Recoverability of trade debtors and contract balances

Management assesses the recoverability of trade receivables and amounts recoverable on contracts based on historical collection experience, the status of individual contracts and customers, and all available information at the reporting date. Changes in these estimates could result in adjustments to the carrying amounts recognised in the financial statements.

Turnover

Turnover represents the total amount receivable by the Company for road resurfacing, road management, specialist civil engineering projects, highway maintenance, the sale of goods and the provision of services during the year, excluding value added tax and trade discounts.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have been transferred to the customer.

Revenue from the provision of services is recognised as the services are performed and the Company obtains the right to consideration.

Revenue from long-term contracts, including road resurfacing, road management and specialist projects, is recognised by reference to the stage of completion of the contract activity at the reporting date, provided that the outcome of the contract can be estimated reliably. The stage of completion is determined by reference to the proportion of contract costs incurred to date compared with the estimated total contract costs, together with management's assessment of work performed where appropriate.

Where the outcome of a contract cannot be estimated reliably, revenue is recognised only to the extent that contract costs incurred are expected to be recoverable. Provision is made immediately for any foreseeable losses on contracts.

To the extent that a right to consideration has been earned, the amount of revenue recognised reflects the value of work performed to date. Revenue recognised but not yet billed to customers is included within debtors as amounts recoverable on contracts. Payments received or amounts invoiced in advance of the related work being performed are included within creditors as payments received on account.

Tangible fixed assets

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

Plant and machinery

-

25% on cost and 20% on cost

Motor vehicles

-

33% on cost and 25% on cost

Office equipment

-

20% on cost

Tangible fixed assets are stated at historical cost less accumulated depreciation. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use.

Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Investments in subsidiary undertakings

Investments in subsidiary undertakings are stated at cost less any provision for impairment. Cost includes the purchase price and any directly attributable costs of acquisition. The carrying values of investments are reviewed for indicators of impairment at each reporting date. Where there is objective evidence that an investment is impaired, its carrying amount is reduced to its recoverable amount and the impairment loss is recognised in the profit and loss account.

Stocks

Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted average cost method and includes all costs incurred in bringing inventories to their present location and condition. Net realisable value is the estimated selling price less the estimated costs of completion and sale. Appropriate provision is made for obsolete, slow-moving and defective items.

Work in progress

Work in progress is valued at the lower of direct cost and estimated selling price less costs to complete and sell. Provision is made for any foreseeable losses, where appropriate. No element of profit is included in the valuation of work in progress.

Financial instruments

Cash and cash equivalents in the balance sheet comprise cash at banks and in hand and short term deposits with an original maturity date of three months or less.

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the statement of comprehensive income and under administrative expenses.

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 entity after deducting all of its financial liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

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

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

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

Pension costs and other post-retirement benefits

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

3.

TURNOVER

The turnover and profit before taxation are attributable to the principal activities of the company.

An analysis of turnover by class of business is given below:

2026

2025

£

£

Rendering of services

23,660,722

23,663,839

Sale of bituminous products

1,331,877

1,337,553

24,992,599

25,001,392

4.	EMPLOYEES AND DIRECTORS

2026

2025

£

£

Wages and salaries

4,178,128

4,027,912

Social security costs

478,019

437,382

Other pension costs

171,350

219,327

4,827,497

4,684,621

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

2026

2025

Number of staff

63

66

2026

2025

£

£

Directors' remuneration

672,105

630,072

Directors' pension contributions to money purchase schemes

30,000

30,000

Information regarding the highest paid director is as follows:

2026

2025

£

£

Emoluments etc

256,972

248,661

Pension contributions to money purchase schemes

10,000

10,000

5.	OPERATING PROFIT

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

2026

2025

£

£

Hire of plant and machinery

2,588

2,133

Other operating leases

74,500

65,803

Depreciation - owned assets

1,117,937

1,015,597

Depreciation - assets on hire purchase contracts

-

46,562

Profit on disposal of fixed assets

(2,039

)

(53,866

)

Auditors' remuneration

15,750

15,000

Accountancy and taxation fees

750

2,472

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2026

2025

£

£

Other interest payable

4,081

-

Hire purchase

3,313

8,022

7,394

8,022

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2026

2025

£

£

Current tax:

UK corporation tax

333,344

228,041

Deferred tax

23,996

57,756

Tax on profit

357,340

285,797

Reconciliation of total tax charge included in profit and loss

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

2026

2025

£

£

Profit before tax

1,351,831

1,173,626

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2025 - 25%)

337,958

293,407

Effects of:

Expenses not deductible for tax purposes

17,549

(9,954

)

Depreciation in excess of capital allowances

2,023

2,534

Structures and building allowance

(190

)

(190

)

Total tax charge

357,340

285,797

8.

DIVIDENDS

2026

2025

£

£

A Ordinary shares of £1 each

Interim

355,200

-

B Ordinary shares of £1 each

Interim

88,800

-

444,000

-