REGISTERED NUMBER: 01921630 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 28 February 2025

for

MHH Contracting Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

15

DIRECTORS:

Mr M H Hague

Miss C J Hague

Mrs K L Helliwell

Mrs R M Woodhouse-Hague

REGISTERED OFFICE:

Prospect Farm

Kirkedge Road

High Bradfield

Sheffield

South Yorkshire

S6 6LJ

REGISTERED NUMBER:

01921630 (England and Wales)

AUDITORS:

Sutton McGrath Hartley

Statutory Auditors

5 Westbrook Court

Sharrow Vale Road

Sheffield

South Yorkshire

S11 8YZ

The directors present their strategic report for the year ended 28 February 2025.

REVIEW OF BUSINESS

The principal activities of the company are providing services to the construction industry. The scope of the company's operations includes demolition & dismantling, earthworks, excavation, aggregate supplies, waste disposal, recycling, asbestos removal and site remediation.

MHH Contracting Limited also holds a portfolio of commercial and residential properties which are used to generate a rental yield.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risk to the activities of the company arises mainly from economic pressures of the construction industry. The company continues to mitigate this risk by using multiple different customers. The impact of inflationary pressures has driven up costs, but this has been eased by passing increases onto customers where possible. Despite this, the company has returned positive results and remains confident about opportunities into future years.

The impact of and quantification of a continued increase in bank interest rates has led to increased interest costs but the impact reduced with an upside gain from interest received.

Balance sheet risk emanates from reduction in profitability and adverse movement in the property market negatively impacting the valuation of the property portfolio.

During the year, the company has substantially invested in building its asset levels mainly focusing on increasing the size of the lorry fleet. The company has taken advantage of the full costing scheme introduced by the Government to aid this process.

KEY PERFORMANCE INDICATORS

The key performance indicator used by the company to show the growth made is the level of turnover.

The company has grown the following revenue streams in the year:

- Customers loads removal increase by 28%

- Tipping increase by 93%

- Contracting increase by 195%

- Plant hire increase by 59%

This quantifies as an increase of £3.29m, although despite this turnover overall has decreased slightly by £0.2m from the previous year.

The gross profit margin this year was 26% compared to 17% in the previous year. Despite a decrease in turnover in the year, the margin has increased due to lower purchase costs and lower reliance on sub-contractors.

Significant investment has grown the asset base of the company which has allowed increase volume and quality of services the company can provide.

FUTURE DEVELOPMENTS

The company continues to grow its asset base and service its continuing and growing customer list.

The company has identified potential growth opportunities both externally and internally which will lead to diversifying the company revenue streams.

An internal software program has been introduced which has allowed the services provided to be conducted more efficiently and improved communication between customers. The providing of a premium service to our customers remains our highest priority.

ON BEHALF OF THE BOARD:

Mr M H Hague - Director

28 November 2025

The directors present their report with the financial statements of the company for the year ended 28 February 2025.

DIVIDENDS

No dividends will be distributed for the year ended 28 February 2025.

DIRECTORS

Mr M H Hague has held office during the whole of the period from 1 March 2024 to the date of this report.

Other changes in directors holding office are as follows:

Mrs J A Hague - resigned 6 September 2024

Miss C J Hague , Mrs K L Helliwell and Mrs R M Woodhouse-Hague were appointed as directors after 28 February 2025 but prior to the date of this report.

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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Sutton McGrath Hartley, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr M H Hague - Director

28 November 2025

Opinion

We have audited the financial statements of MHH Contracting Limited (the 'company') for the year ended 28 February 2025 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 28 February 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 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 four, 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:

Our assessment of the susceptibility to material misstatement, whether by fraud or error, is made in a risk based approach.

In this approach, laws and regulations applicable to the entity, such as the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice including Financial Reporting Standard 102, the relevant tax compliance regulations within the UK, employment law, and Health and Safety law is considered, and the policies and controls the entity has in place to comply with these laws are reviewed, by discussion, reviews of correspondence and registrations monitored by external bodies. The engagement team remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Policies and controls relating to the risk of material misstatement as a result of fraud are also considered. These are assessed by obtaining an understanding of the company's operations and control environment. The policies and controls have been reviewed by discussion, review and sample testing of accounting entries, challenging assumptions and judgements, reviewing and evaluating related parties transactions, and wider background searches. Testing of income recognition and cut off, along with testing of inventory valuation is also completed.

We have ensured that the engagement team have appropriate levels of competence and experience to effectively monitor these risks and carry out work relevant to our assessment of each risk, including consideration of the industry the company operates in and its size and complexity.

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.

James Salim FCCA (Senior Statutory Auditor)

for and on behalf of Sutton McGrath Hartley

Statutory Auditors

5 Westbrook Court

Sharrow Vale Road

Sheffield

South Yorkshire

S11 8YZ

28 November 2025

TURNOVER

3

15,253,210

15,469,686

Cost of sales

11,318,638

12,903,688

GROSS PROFIT

3,934,572

2,565,998

Administrative expenses

3,762,738

3,493,525

171,834

(927,527

)

Other operating income

558,019

948,094

OPERATING PROFIT

5

729,853

20,567

Interest receivable and similar income

216,095

223,895

945,948

244,462

Interest payable and similar expenses

6

311,862

201,693

PROFIT BEFORE TAXATION

634,086

42,769

Tax on profit

7

419,839

430,924

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

214,247

(388,155

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

214,247

(388,155

)

FIXED ASSETS

Intangible assets

8

16,670

21,322

Tangible assets

9

12,017,148

11,141,800

Investments

10

162,394

162,394

Investment property

11

9,551,833

9,413,546

21,748,045

20,739,062

CURRENT ASSETS

Stocks

12

388,025

411,763

Debtors

13

21,338,320

17,280,149

Cash at bank

531,937

329,057

22,258,282

18,020,969

CREDITORS

Amounts falling due within one year

14

12,700,229

9,899,148

NET CURRENT ASSETS

9,558,053

8,121,821

TOTAL ASSETS LESS CURRENT LIABILITIES

31,306,098

28,860,883

CREDITORS

Amounts falling due after more than one year

15

(4,610,842

)

(2,836,877

)

PROVISIONS FOR LIABILITIES

19

(3,068,261

)

(2,611,258

)

NET ASSETS

23,626,995

23,412,748

CAPITAL AND RESERVES

Called up share capital

20

150

150

Revaluation reserve

21

8,436,534

8,832,031

Retained earnings

21

15,190,311

14,580,567

SHAREHOLDERS' FUNDS

23,626,995

23,412,748

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:

Mr M H Hague - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 March 2023

150

14,443,641

9,357,112

23,800,903

Changes in equity

Total comprehensive income

-

136,926

(525,081

)

(388,155

)

Balance at 29 February 2024

150

14,580,567

8,832,031

23,412,748

Changes in equity

Total comprehensive income

-

609,744

(395,497

)

214,247

Balance at 28 February 2025

150

15,190,311

8,436,534

23,626,995

Cash flows from operating activities

Cash generated from operations

1

6,171,315

(789,388

)

Interest paid

(247,386

)

(168,452

)

Interest element of finance lease payments paid

(64,476

)

(33,241

)

Tax paid

37,164

191,515

Net cash from operating activities

5,896,617

(799,566

)

Cash flows from investing activities

Purchase of tangible fixed assets

(1,884,775

)

(855,673

)

Purchase of investment property

(138,287

)

-

Sale of tangible fixed assets

52,084

517,500

Interest received

216,095

223,895

Net cash from investing activities

(1,754,883

)

(114,278

)

Cash flows from financing activities

New loans

2,900,000

-

Loan repayments in year

(413,398

)

(1,019,921

)

New finance leases

-

1,559,876

Finance leases paid

(979,070

)

(702,176

)

Amount introduced by directors

176,587

190,025

Amount withdrawn by directors

(154,888

)

(31,797

)

Loans from related companies

(5,557,966

)

(65,950

)

Repaid to related companies

89,881

762,295

Net cash from financing activities

(3,938,854

)

692,352

Increase/(decrease) in cash and cash equivalents

202,880

(221,492

)

Cash and cash equivalents at beginning of year

2

329,057

550,549

Cash and cash equivalents at end of year

2

531,937

329,057

1.	RECONCILIATION OF PROFIT/(LOSS) FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit/(loss) for the financial year

214,247

(388,155

)

Depreciation charges

997,596

1,013,443

Profit on disposal of fixed assets

(35,602

)

(123,538

)

Gain on revaluation of fixed assets

-

(344,500

)

Finance costs

311,862

201,693

Finance income

(216,095

)

(223,895

)

Taxation

419,839

430,924

1,691,847

565,972

Decrease in stocks

23,738

2,983

Decrease/(increase) in trade and other debtors

1,409,915

(4,404,460

)

Increase in trade and other creditors

3,045,815

3,046,117

Cash generated from operations

6,171,315

(789,388

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 28 February 2025

28/2/25

1/3/24

£

£

Cash and cash equivalents

531,937

329,057

Year ended 29 February 2024

29/2/24

1/3/23

£

£

Cash and cash equivalents

329,057

550,549

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1/3/24

Cash flow

At 28/2/25

£

£

£

Net cash

Cash at bank and in hand

329,057

202,880

531,937

329,057

202,880

531,937

Debt

Finance leases

(1,936,769

)

979,070

(957,699

)

Debts falling due within 1 year

(386,309

)

(353,310

)

(739,619

)

Debts falling due after 1 year

(2,121,373

)

(2,133,292

)

(4,254,665

)

(4,444,451

)

(1,507,532

)

(5,951,983

)

Total

(4,115,394

)

(1,304,652

)

(5,420,046

)

1.	STATUTORY INFORMATION

MHH Contracting 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.

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 as modified by the revaluation of certain assets.

Reporting period

The Financial Statements are drawn up to 3 March 2025 ("the financial year"), which is within 7 days of the company's accounting reference date (28 February 2025). Comparative figures are drawn up to 29 February 2025.

Preparation of consolidated financial statements

The financial statements contain information about MHH Contracting Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 402 of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Long term contracts

Amounts recoverable on long term contracts, which are included in debtors, are stated at the net sales value of the work done after provision for contingencies and anticipated future losses on contracts, less amounts received as progress payments on account. Excess progress payments are included in creditors as payments on account.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of five years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

25% on reducing balance

Fixtures and fittings

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Freehold property is valued at the most recent valuation.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Stocks

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

Financial instruments

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

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

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.

Impairment of financial assets

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.

Derecognition of financial assets

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.

Classification of financial liabilities

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

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.

Other financial liabilities

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.

Derecognition of financial liabilities

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

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 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.

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.

Leases

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

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

Rental income and expenditure 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.

Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.

3.

TURNOVER

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

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

2025

2024

£

£

Materials sold

3,259,172

5,328,059

Customer recharges

2,588,049

3,928,864

Customer loads removed

4,339,316

3,400,069

Tipping

1,365,039

707,827

Contracting

1,988,586

675,086

Plant hire

1,038,587

655,007

Other

674,461

774,774

15,253,210

15,469,686

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

1,890,972

1,843,987

Social security costs

207,422

192,707

Other pension costs

216,335

216,955

2,314,729

2,253,649

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

2025

2024

Management

5

5

Support staff

17

14

Contractors

40

32

62

51

2025

2024

£

£

Directors' remuneration

17,664

17,664

5.	OPERATING PROFIT

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

2025

2024

£

£

Depreciation - owned assets

992,945

1,011,504

Profit on disposal of fixed assets

(35,602

)

(123,538

)

Computer software amortisation

4,652

1,938

Audit Fees

13,275

12,000

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank loan interest

247,386

168,452

Hire purchase

64,476

33,241

311,862

201,693