REGISTERED NUMBER: 01336855 (England and Wales)

REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

FOR

TERCON LIMITED

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

4

Income Statement

7

Balance Sheet

8

Statement of Changes in Equity

9

Notes to the Financial Statements

10

DIRECTORS:

J Hunter

R Hunter

SECRETARY:

J Hunter

REGISTERED OFFICE:

Dean Road

Avonmouth

Bristol

BS11 8AT

REGISTERED NUMBER:

01336855 (England and Wales)

AUDITORS:

Burnside

Chartered Accountants

and Statutory Auditor

61 Queen Square

Bristol

BS1 4JZ

The directors present their report with the financial statements of the company for the year ended 31 March 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of contracting in the building industry.

REVIEW OF BUSINESS

The Directors are satisfied with the business performance in the period. Market and economic climate remained challenging throughout the year but a return to profit confirms that significant progress has been made within the business.

This has continued into the following period with further positive progress towards the sustainable growth business objectives.

DIVIDENDS

An interim dividend of £15,000 per share in respect of the year ended 31 March 2025 was declared during the year and payable on 20 October 2025. The directors recommend that no final dividend be paid in respect of the year ended 31 March 2025.

The total distribution of dividends for the year ended 31 March 2025 will be £120,000.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2024 to the date of this report.

J Hunter

R Hunter

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing 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

Burnside are deemed to be re-appointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:

J Hunter - Director

28 November 2025

Opinion

We have audited the financial statements of Tercon Limited (the 'company') for the year ended 31 March 2025 which comprise the Income Statement, Balance Sheet, Statement of Changes in Equity and 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 2025 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 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Directors has 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 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; or

-	the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page two, 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:

An understanding of the legal and regulatory framework applicable to the entity was obtained from management and those charged with governance of the entity, and the audit engagement team was confirmed to have the appropriate competence and capabilities to identify non-compliance with such a framework.

No significant instances of fraud, non-compliance with laws and regulations or other irregularities were communicated to the engagement team by management or those charged with governance, and no particular audit areas or legislation were identified that gave rise to any significant risks of material misstatement in respect of such irregularities.

Due to the size and nature of the entity, its susceptibility to material misstatement resulting from fraud, non-compliance with laws and regulations, or other irregularities is considered to be low, and the audit approach was appropriately planned so as to address this risk.

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.

Steven Coombe FCA (Senior Statutory Auditor)

for and on behalf of Burnside

Chartered Accountants

and Statutory Auditor

61 Queen Square

Bristol

BS1 4JZ

28 November 2025

TURNOVER

5,508,148

5,129,131

Cost of sales

4,413,006

4,172,057

GROSS PROFIT

1,095,142

957,074

Administrative expenses

792,386

920,399

302,756

36,675

Other operating income

35,080

31,697

OPERATING PROFIT

5

337,836

68,372

Interest receivable and similar income

10,437

6,775

348,273

75,147

Interest payable and similar expenses

2,993

2,802

PROFIT BEFORE TAXATION

345,280

72,345

Tax on profit

6

70,309

-

PROFIT FOR THE FINANCIAL YEAR

274,971

72,345

FIXED ASSETS

Tangible assets

8

315,463

318,553

CURRENT ASSETS

Debtors

9

1,916,605

901,171

Cash at bank and in hand

827,461

921,808

2,744,066

1,822,979

CREDITORS

Amounts falling due within one year

10

2,202,713

1,232,818

NET CURRENT ASSETS

541,353

590,161

TOTAL ASSETS LESS CURRENT LIABILITIES

856,816

908,714

CREDITORS

Amounts falling due after more than one year

11

(42,528

)

(19,706

)

PROVISIONS FOR LIABILITIES

14

(70,309

)

-

NET ASSETS

743,979

889,008

CAPITAL AND RESERVES

Called up share capital

15

200

300

Capital redemption reserve

100

-

Retained earnings

743,679

888,708

SHAREHOLDERS' FUNDS

743,979

889,008

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 28 November 2025 and were signed on its behalf by:

J Hunter - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2023

300

816,363

-

816,663

Changes in equity

Total comprehensive income

-

72,345

-

72,345

Balance at 31 March 2024

300

888,708

-

889,008

Changes in equity

Reduction in share capital

(100

)

-

100

-

Dividends

-

(120,000

)

-

(120,000

)

Total comprehensive income

-

274,971

-

274,971

Purchase of own shares

-

(300,000

)

-

(300,000

)

Balance at 31 March 2025

200

743,679

100

743,979

1.	STATUTORY INFORMATION

Tercon 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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

The turnover shown in the statement of comprehensive income represents amounts earned during the year, exclusive of Value Added Tax.

In respect of long-term contracts and contracts for on-going services, turnover represents the value of work done in the year, including estimates of amounts not invoiced. Turnover in respect of long-term contracts and contracts for on-going services is recognised by reference to stage of completion.

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.

Leasehold improvements

-

2% on cost

Plant and machinery

-

7.5% - 15% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

33% on cost

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 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 that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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.

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 payable under operating leases are charged in the profit and loss account on a straight line basis over the lease term.

Pension costs and other post-retirement benefits

Short term employee benefits including holiday pay and annual bonuses are accrued as services are rendered.

The company operates defined contribution pension schemes for directors and employees.

In addition, the company contributes to the personal pension schemes of certain directors and employees.

Contributions payable to the pension schemes are charged to the statement of comprehensive income as they become payable in accordance with the rules of the scheme. Differences between contributions payable in the year and those actually paid are shown as either accruals or prepayments in the balance sheet

Long term contracts

The amount of profit attributable to the stage of completion of a long term contract is recognised when the outcome of the contract can be foreseen with reasonable certainty. Turnover for such contracts is stated at the cost appropriate to their stage of completion plus attributable profits, less amounts recognised in previous years. Provision is made for any losses as soon as they are foreseen.

Amounts recoverable on contracts are included within debtors and represent turnover recognised in excess of payments on account.

Financial instruments

Financial assets and liabilities are recognised in the balance sheet when the company becomes party to the contractual provisions of the instrument.

Trade and other debtors and creditors are classified as basic financial instruments and are measured on initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the company not be able to collect all amounts due.

Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts which are an integral part of the company's cash management.

Financial liabilities and equity instruments issued by the company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds received, net of any direct issue costs.

Interest bearing bank loans, overdrafts and other loans which meet the criteria of basic financial instruments are initially recorded at the present value of cash payable to the bank, usually being equivalent to the proceeds received net of direct issue costs. These liabilities are subsequently measured at amortised cost, using the effective interest rate method.

Going concern

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

3.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

848,737

1,032,665

Social security costs

93,964

112,804

Other pension costs

32,650

56,656

975,351

1,202,125

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

2025

2024

Administrative staff

9

11

Construction staff

9

11

18

22

4.	DIRECTORS' EMOLUMENTS

2025

2024

£

£

Directors' remuneration

93,909

119,513

Directors' pension contributions to money purchase schemes

10,080

27,127

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

3

5.	OPERATING PROFIT

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

2025

2024

£

£

Depreciation - owned assets

48,065

52,723

Depreciation - assets on hire purchase contracts

25,825

15,888

Profit on disposal of fixed assets

(13,200

)

(23,240

)

Auditors' remuneration

7,850

7,850

6.

TAXATION

Analysis of the tax charge

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

2025

2024

£

£

Deferred tax

70,309

-

Tax on profit

70,309

-

UK corporation tax has been charged at 25% (2024 - 25%).

Reconciliation of total tax charge included in profit and loss

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

2025

2024

£

£

Profit before tax

345,280

72,345

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

86,320

18,086

Effects of:

Expenses not deductible for tax purposes

323

82

Unrecognised losses carried forward / (utilised)

-

(18,168

)

Deferred tax asset not recognised previously

(16,334

)

-

Total tax charge

70,309

-

At 31 March 2025, the company had trading tax losses of £31,998 (2024 - £381,943) available for carry forward for offset against future taxable trading profits.

7.

DIVIDENDS

2025

2024

£

£

Ordinary shares of £25 each

Interim

120,000

-

8.	TANGIBLE FIXED ASSETS

Leasehold

Plant and

Motor

Computer

improvements

machinery

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 April 2024

11,800

866,616

139,825

122,551

1,140,792

Additions

-

-

70,800

-

70,800

Disposals

-

-

(64,125

)

-

(64,125

)

At 31 March 2025

11,800

866,616

146,500

122,551

1,147,467

DEPRECIATION

At 1 April 2024

11,800

576,312

111,576

122,551

822,239

Charge for year

-

44,190

29,700

-

73,890

Eliminated on disposal

-

-

(64,125

)

-

(64,125

)

At 31 March 2025

11,800

620,502

77,151

122,551

832,004

NET BOOK VALUE

At 31 March 2025

-

246,114

69,349

-

315,463

At 31 March 2024

-

290,304

28,249

-

318,553

Included within the net book value of £315,463 is £69,350 (2024 - £104,587) relating to assets held under hire purchase and finance lease agreements. The depreciation charged to the financial statements in the year in respect of such assets amounted to £25,825 (2024 - £15,888).

9.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade debtors

1,199,671

415,491

Amounts recoverable on

contracts

712,107

119,200

Prepayments and accrued income

4,827

366,480

1,916,605

901,171

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Bank loans and overdrafts

254,728

-

Hire purchase contracts (see note 12)

28,360

29,167

Payments on account

845,624

432,529

Trade creditors

197,344

411,697

Social security and other taxes

50,996

52,010

VAT

164,102

37,741

Other creditors

125,567

4,970

Accruals and deferred income

535,992

264,704

2,202,713

1,232,818

11.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2025

2024

£

£

Hire purchase contracts (see note 12)

38,100

15,278

Tenant deposit

4,428

4,428

42,528

19,706

12.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase

contracts

2025

2024

£

£

Net obligations repayable:

Within one year

28,360

29,167

Between one and five years

38,100

15,278

66,460

44,445

Non-cancellable

operating leases

2025

2024

£

£

Within one year

90,000

90,000

Between one and five years

240,000

330,000

330,000

420,000

13.	SECURED DEBTS

The following secured debts are included within creditors:

2025

2024

£

£

Bank overdraft

254,728

-

Hire purchase contracts

66,460

44,445

321,188

44,445

Hire purchase and finance lease agreements are secured on the assets to which they relate. The bank overdraft facility is secured by a debenture over the assets of the company.

14.	PROVISIONS FOR LIABILITIES

2025

2024

£

£

Deferred tax

Accelerated capital allowances

78,866

60,525

Other timing differences

(557

)

(370

)

Tax losses carried forward

(8,000

)

(60,155

)

70,309

-

Deferred

tax

£

Charge to Income Statement during year

70,309

Balance at 31 March 2025

70,309

At 31 March 2025, in addition to the deferred tax provision recognised above, the company had an unrecognised deferred tax asset totalling £Nil (2024 - £16,334) in respect of tax losses carried forward and available to offset against future taxable profits.

15.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2025

2024

value:

£

£

8

Ordinary

£25

200

300

(2024 - 12 )

On 8 October 2024, the company purchased 4 of its own shares at nominal value of £25 per share. The total consideration of £300,000 was paid in cash and accounted for in retained earnings.

16.	RELATED PARTY DISCLOSURES

During the year the company declared dividends of £120,000 (2024 - £Nil) to its directors and shareholders, payable on 20 October 2025.

During the year the company paid rent totalling £90,000 (2024 - £73,333) to Tercon Limited Management Pension Scheme, of which the directors are trustees and members.

17.	ULTIMATE CONTROLLING PARTY

The company is controlled by its directors who own the entire issued share capital of the company.