The directors present the strategic report for the year ended 28 February 2026.

The past year has marked a period of meaningful progress for the Company, with strong financial performance and key strategic developments that position the business well for future growth.

The Company has delivered a solid set of results for the financial year, with turnover increasing by 62% to £20.8 million (2025: £12.9 million). Profit before tax has improved significantly to £2.2 million, up from £1.1 million in the prior year. This increase is attributed to both volume growth and margin improvements, supported by tight cost control and more stable market conditions.

Our cash position remains strong, underpinned by prudent financial management and controlled capital investment. This allows the Company to move forward with confidence and look to invest in future housing developments.

Future Developments
A major boost for the Company is the progress being made at our flagship development at Oudenarde, Bridge of Earn, which successfully commenced during the year. This long anticipated site is expected to become a cornerstone of our delivery pipeline and is already generating a healthy level of customer interest and reservations.

Reservation activity has been buoyant in general into the new financial year, further reinforcing the underlying market demand for housing. Despite the usual operational constraints facing the industry, including planning delays, cost inflation, and regulatory complexities, the business remains agile and well-positioned to respond.

Looking forward, the Company’s strategic focus remains on unlocking further housing opportunities across key sites, with a clear ambition to meet growing demand in both the private and affordable sectors.

The principal risk facing the business is the continuing uncertainty facing the UK economy. Whilst the demand for new build housing remains strong at the current time there is a concern that rising inflation and rising interest rates along with the ever increasing costs of living could end up with consumers unwilling, or unable, to make significant financial commitments, which could adversely affect the house building industry.

Financial risk management objectives and strategies

Due to the company's strong cash position and the fact that it has no external borrowings, the directors are of the opinion that the company is well placed to weather the current conditions in the housing market. The company will also continue to seek to take advantage of opportunities that may arise to enhance its land bank.

Financial key performance indicators (KPIs)

The directors use the following key performance indicators to measure the company's performance:-

2026         2025

Gross profit % on trading activity          19.12%             18.99%

Net profit % on trading activity          10.66%              8.88%

Turnover                 £20,832,639              £12,872,190

Profit before tax                 £2,221,320               £1,142,920

Non financial key performance indicators (KPIs)

The directors consider a number of non financial performance indicators on an ongoing basis, such as the recruitment and retention of talented employees with the skills to meet its objectives and the monitoring of customer satisfaction.

On behalf of the board

The directors present their annual report and financial statements for the year ended 28 February 2026.

The principal activity of the company continued to be that of building contractors.

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

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

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

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

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

In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

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

We have audited the financial statements of G S Brown Construction Limited (the 'company') for the year ended 28 February 2026 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 28 February 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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

• We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates;

• We identified the laws and regulations applicable to the company through discussions with management and through our own knowledge of the industry.

We enquired with management about their own identification and assessment of the risk of irregularities;

We considered the opportunities that may exist within the organisation for fraud and identified the greatest risk in relation to revenue recognition, valuation of work in progress and management override of internal controls. Our audit procedures to respond to these risks included, but were not limited to;

• Reviewing the financial statement disclosure and testing of financial statement balances to supporting documentation;

• We assessed the extent of compliance with the laws and regulations identified above through making enquiries with management, review of meeting minutes and inspecting legal correspondence;

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

• We performed analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatements due to fraud;

• Testing journal entries to identify unusual transactions and evaluated the underlying rationale;

• Evaluating evidence of any bias by the directors that may represent a material misstatement by comparing accounting estimates such as work in progress and accruals to the underlying supporting documentation and assessing the rationale applied,

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. As a result of these, we considered the opportunities that may exist within the organisation for fraud and audit procedures were designed in response to the risks identified, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve, for example, forgery, deliberate concealment, or collusion.

As part of an audit in accordance with ISAs (UK), professional judgement was exercised, and professional scepticism was maintained throughout the audit.

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.

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

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

The notes on pages 13 to 28 form part of these financial statements.

G S Brown Construction Limited is a private company limited by shares incorporated in Scotland. The registered office is St Madoes, Glencarse, PH2 7NF.

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 investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

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

Turnover is recognised at the fair value of the consideration received or receivable and is shown net of VAT and other sales related taxes. Turnover and profit are recognised as follows:

(a) Private housing development properties and land sales

Where a reservation agreement is in place and a deposit has been received, turnover is recognised over time based on the stage of completion of the individual residential property at the balance sheet date. The stage of completion is measured by comparing actual construction costs incurred to date with total estimated construction costs.

This approach reflects the progressive transfer of control to the purchaser as construction progresses.

Where no reservation agreement exists, turnover is recognised on legal completion, being the point at which the significant risks and rewards of ownership transfer to the purchaser.

(b) Small contracting work

Turnover represents the net invoiced sales, excluding value added tax.

(c) Social housing contracts

Turnover and costs are recognised by reference to the stage of completion of the contract activity at the balance sheet date. This is normally measured by surveys of work performed to date.

Contract costs are recognised as expenses in the period in which they are incurred. When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately.

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.

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

Investments are shown at market value at the year-end. Any aggregate surplus or deficit arising from changes in market value is recognised in profit or loss.

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

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated on the first-in, first-out method and includes all purchase, transport and handling costs that have been incurred in bringing the stocks to their present location and condition.

Work in progress is valued at cost to the company of land, materials, labour, plant hire and other attributable overheads on contracts unfinished at the year-end date.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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

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

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

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

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

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.

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

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.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Unlisted investments comprise investments in investment properties, secured bonds, commodities and loans granted as part of sales transactions that are secured by way of a second legal charge on the respective property.

The fair value of investment properties is determined by taking into account factors such as rental yields, market rates and conditions. The variables used are kept under regular review to ensure that as far as possible they reflect current economic circumstances. At 28 February 2026 the investment recognised on the balance sheet was £356,266 (2025 - £447,959).

The fair value of the secured bonds is determined by taking into account factors such as the length of time the bonds have been outstanding, market conditions, including those in respect of the underlying secured assets and probability of borrower default. The variables used are kept under regular review to ensure that as far as possible they reflect current economic circumstances. At 28 February 2026 the investment recognised on the balance sheet was £5.9m (2025 - £5.9m).

At 28 February 2026 the commodities are recognised at the market value of £353,769 (2025 - £327,016) on the balance sheet.

The fair value of the secured loans are determined by taking into account factors such as the length of time the loan has been outstanding, market conditions, including those in respect of house price inflation, forced sale discount and probability of borrower default. The variables used are kept under regular review to ensure that as far as possible they reflect current economic circumstances; however, changes in house prices, redemption rates, interest rates, unemployment levels and bankruptcy trends in the UK could result in actual returns differing from reported valuations. The Company is no longer making any new investments in this way. At 28 February 2026 the investment recognised on the balance sheet was £64,375 (2025 - £113,875).

Given the high quality of the Company's inventory asset base, the sensitivity of the assumptions used in assessing the Net Realisable Value ('NRV') of the Company's inventories is relatively low. As such no reasonable possible change in assumptions is likely to result in a material impact to the carrying value of the Company's land and work in progress balance within the next twelve months. The disclosure below provides additional insight into the carrying value of the Company's land and work in progress.

Valuations of the Company's developments, which include an estimation of costs to complete and anticipated revenues, are carried out at regular intervals throughout the year. The valuations allocate total expected site development costs between units built in the current year and those to be built in future years. These valuations therefore include a degree of uncertainty when estimating the profitability of a site and in assessing any impairment provision which may be required.

During the year ended 28 February 2026, the Company conducted reviews of the NRV of its development land and work in progress carrying values. The reviews were conducted on a site by site basis, using assumptions surrounding anticipated selling prices and the level of future development costs, based on management's assessment of market conditions existing at the balance sheet date. Management does not believe that a reasonably possible change in the assumptions could result in a material impairment of land and work in progress carrying values in the next twelve months.

If there are significant movements in UK house prices or development costs, beyond management's reasonably possible expectations, then further impairments of land and work in progress may be necessary.

The Company carries a provision of £20m (2025 - £20m) based on management's best estimates of the costs of fulfilling the Company's statutory obligations under Section 75 of the Town and Country Planning (Scotland) Act 1997 in respect of land at Oudenarde, Bridge of Earn, by Perth. These estimates may change over time as further information is assessed. This is a highly complex area with judgements and estimates in respect of the cost of remedial works to be incurred.

Management exercises judgement when assessing the stage of completion of residential units for which revenue is recognised over time. This includes forecasting the total costs required to complete each property and allocating costs consistently across units under construction. These judgements involve estimation uncertainty, particularly in relation to forecast construction costs and expected completion dates.

Management considers the assumptions used to be reasonable and based on the best information available at the reporting date, but acknowledges that actual results may differ from those estimated.

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 investment properties were valued on an open market basis at the year-end by the directors.

In accordance with the requirements of Section 21 of FRS102 the company has made a total provision of £20,004,881(2025 - £20,039,098) in respect of land at Oudenarde, Bridge of Earn, by Perth.

The provision relates to the obligations placed on the company by the local planning authority under Section 75 of the Town and Country Planning (Scotland) Act 1997 agreement. The agreement provides for the building of a school, rail bridge and other local facilities, all of which have been costed on a prudent basis by the company for the provision.

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

Indemnities are held by the Bank of Scotland covering all guarantees granted and any future guarantees granted in favour of third parties. At the year-end this amounted to £50,000 (2025 - £50,000).

Bonds in respect of roads that are not yet adopted by local authorities are held by NHBC and other providers. Once the road is adopted by the authority the bond is released. At the year-end the value of bonds in force amounted to £2,183,750 (2025 - £1,706,400).

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:

During the year the company entered into the following transactions with related parties:

The following amounts were outstanding at the reporting end date:

During the year, the directors completed a review of the overhead absorption rate applied in the valuation of development stock and work in progress.

Following this review, the overhead absorption rate applied to development activities was reduced from 11% to 8%. The revised rate reflects management's updated assessment of the level of overhead costs attributable to development activities and is considered to provide a more appropriate basis for the valuation of stock and work in progress.

In accordance with FRS 102, the directors consider this to represent a change in accounting estimate rather than the correction of a prior period error. Accordingly, the revised estimate has been applied prospectively and comparative amounts have not been restated.

For illustrative purposes only, the table below presents selected prior year information adjusted to reflect the application of the revised 8% overhead absorption rate. The adjusted information does not form part of the statutory comparative figures and is presented solely to assist users in understanding the effect of the revised estimate.