REGISTERED NUMBER: 04598541 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

FOR

CROWN HIGHWAYS LIMITED

Page

Company Information

1

Strategic Report

2

to

3

Report of the Directors

4

to

5

Report of the Independent Auditors

6

to

9

Statement of Comprehensive Income

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

to

25

DIRECTORS:

S Jones

M Dale

A J Parr

SECRETARY:

S Jones

REGISTERED OFFICE:

Unit 5

Queens Drive Industrial Estate

Chasetown

Burntwood

Staffordshire

WS7 4QF

REGISTERED NUMBER:

04598541 (England and Wales)

AUDITORS:

Sumer Auditco Limited

Chartered Accountants & Statutory Auditors

Stone House

Stone Road Business Park

Stoke-on-Trent

ST4 6SR

BANKERS:

NatWest

1 St Phillips Place

Birmingham

West Midlands

B3 2PT

The directors present their strategic report for the year ended 31 March 2025.

Crown Highways continues to deliver civil engineering, road lighting, electrical and technology projects on the National Highways strategic network and supporting the local authority regions.

REVIEW OF BUSINESS

The following is a report on the company's result for the year ended 31 March 2025.

Key Performance Indicators:

2025

2024

£

£

Turnover

36,530,103

26,396,255

Gross profit

8,396,210

6,251,250

Gross profit %

22.98%

23.68%

Net assets

3,728,298

3,627,092

EBITDA

1,846,120

1,291,892

EBITDA Growth

42.90%

291.54%

Financial year 2024/25 has seen Crown Highways turnover rise to an all-time high, this increase has been born from a number of successful contracts across our three delivery departments.

In year our 6-year Scheme Delivery Framework (SDF) with National Highways (NH) we have consistently delivered work packages, across six NH regions. During the year a wide range of scheme sizes have been delivered, our main road lighting & electrical schemes were M60 Junction 14 (North West) and the A42 (East Midlands) both schemes spanned the whole financial year providing regular income. The technology teams continued to install loop detectors and new technology through the NH Technology Refresh project which is updating aged roadside technology systems.

Our technology team installed over 300 radar units in the South East Smart Motorway areas, the team are widely recognised as the best in country in the installation, commissioning and maintaining NH radar systems.

Working with National Highways we continue to be part of the national LED upgrade (part of the NH journey to carbon neutrality) during the year we collaboratively delivered 6000 units in the Midlands with our supply chain partners, this will continue into 2025/26.

Our Civil Engineering department had a successful year delivering traffic signal infrastructure projects in Derbyshire and Lincolnshire. Through a new client Sustrans the department delivered the first phase of a cycleway / footpath scheme in Walsall, the subsequent phase will be delivered over the next few financial years.

All works are carried out by a skilled and competent workforce supported by key supply chain partners, the Crown Highways training academy which continued to grow in 2025.

PRINCIPAL RISKS AND UNCERTAINTIES

A principal risk to the business is the end of the current SDF contract (2027), tendering for SDF2 will start in 2025/26. There are unknowns around the structure of the contract and what trades will and will not be included. However Crown Highways are well placed to retain a position on the framework due to the experience gained over the current contract.

Exposure to bad debts is considered to be the biggest risk to the company. However, a large proportion of the company's debtors are large well-established companies with good credit history with the remainder being directly with National Highways. In addition, the Company operates internal credit checking and control processes that have been developed over several years. Together these mitigate credit risk to what is considered an acceptable level.

FINANCIAL RISK MANAGEMENT

Credit risk is addressed by carrying out regular checks of our customers with a reputable credit risk agency and holding a provision for doubtful debts on the balance sheet.

WORKING CAPITAL

The company meets its day to day working capital requirements through cash receipts from customers. These are closely monitored to ensure adherence to agreed credit terms. Stock is regularly reviewed to ensure that the valuation is in line with UK accounting standards and is deemed recoverable. Any obsolete stock that is identified is fully provided for within these financial statements.

ON BEHALF OF THE BOARD:

S Jones - Director

8 November 2025

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

DIVIDENDS

The details of the dividends paid in the year are disclosed within the financial statements.

DIRECTORS

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

S Jones

M Dale

A J Parr

Other changes in directors holding office are as follows:

M J Leadbetter - resigned 28 February 2025

DISCLOSURE IN THE STRATEGIC REPORT

The company has, in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013, set out in the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008. The likely future developments of the group are disclosed in the strategic report.

The strategic report can be found on page 2 of the financial statements.

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 are deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.

ON BEHALF OF THE BOARD:

S Jones - Director

8 November 2025

Opinion

We have audited the financial statements of Crown Highways Limited (the 'company') for the year ended 31 March 2025 which comprise the Statement of Comprehensive Income, Statement of Financial Position, 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 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:

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit

evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

•

the nature of the industry and sector, control environment and business performance including the design of the company remuneration policies, key drivers for directors' remuneration, bonus levels and performance targets;

•

results of our enquiries of management about their own identification and assessment of the risks of irregularities;

•

any matters we identified having obtained and reviewed the company documentation of their policies and procedures relating to:

-

identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance;

-

detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

-

the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

•

the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

Based on this approach, we were able to assess the company risks and ensure the risks were considered throughout all areas of audit testing. The audit team was professionally sceptical throughout the audit and remained alert for inaccurate or misleading information.

Audit response to risks identified

As a result of performing the above, we identified compliance with health and safety regulations as key audit matters related to the potential risk of fraud or irregularities. Our procedures to respond to risks identified included the following:

• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

• enquiring of management concerning actual and potential litigation and claims;

• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

• obtaining an understanding of provisions and held discussions with management to understand the basis of recognition or non-recognition of tax provisions; and

• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

Audit testing was completed on a targeted sample basis based on our assessment of risk and materiality. Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

-

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

-	Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.

-	Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

-

Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Report of the Auditors to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Report of the Auditors. However, future events or conditions may cause the company to cease to continue as a going concern.

-	Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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.

Helen Louise Tidyman (Senior Statutory Auditor)

for and on behalf of Sumer Auditco Limited

Chartered Accountants & Statutory Auditors

Stone House

Stone Road Business Park

Stoke-on-Trent

ST4 6SR

12 November 2025

TURNOVER

3

36,530,103

26,396,255

Cost of sales

(28,133,893

)

(20,145,005

)

GROSS PROFIT

8,396,210

6,251,250

Administrative expenses

(7,512,425

)

(5,838,364

)

883,785

412,886

Other operating income

76,992

102,130

OPERATING PROFIT

5

960,777

515,016

Interest receivable and similar income

6

3,006

1,114

963,783

516,130

Interest payable and similar expenses

7

(81,243

)

(118,588

)

PROFIT BEFORE TAXATION

882,540

397,542

Tax on profit

8

100,666

(184,551

)

PROFIT FOR THE FINANCIAL YEAR

983,206

212,991

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

983,206

212,991

FIXED ASSETS

Intangible assets

10

294,699

510,894

Tangible assets

11

2,291,254

2,042,024

2,585,953

2,552,918

CURRENT ASSETS

Stocks

12

112,184

502,916

Debtors

13

7,030,947

6,219,036

Cash at bank

1,985,475

636,313

9,128,606

7,358,265

CREDITORS

Amounts falling due within one year

14

(6,889,935

)

(5,301,960

)

NET CURRENT ASSETS

2,238,671

2,056,305

TOTAL ASSETS LESS CURRENT LIABILITIES

4,824,624

4,609,223

CREDITORS

Amounts falling due after more than one year

15

(688,079

)

(573,884

)

PROVISIONS FOR LIABILITIES

19

(408,247

)

(408,247

)

NET ASSETS

3,728,298

3,627,092

CAPITAL AND RESERVES

Called up share capital

20

136

136

Retained earnings

21

3,728,162

3,626,956

SHAREHOLDERS' FUNDS

3,728,298

3,627,092

The financial statements were approved by the Board of Directors and authorised for issue on 8 November 2025 and were signed on its behalf by:

S Jones - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2023

136

3,563,965

3,564,101

Changes in equity

Dividends

-

(150,000

)

(150,000

)

Total comprehensive income

-

212,991

212,991

Balance at 31 March 2024

136

3,626,956

3,627,092

Changes in equity

Dividends

-

(882,000

)

(882,000

)

Total comprehensive income

-

983,206

983,206

Balance at 31 March 2025

136

3,728,162

3,728,298

1.	STATUTORY INFORMATION

Crown Highways 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 (£).

The principal activities of the company are that of civil engineering, highway works, road lighting, traffic signs, technology and loop detectors.

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.

Going concern

The financial statements have been prepared on a going concern basis. The company meets its day to day working capital obligations from cash generated by its operation. After reviewing the company's forecasts and projections, the directors are confident that the company has adequate resources to continue in operational existence for the foreseeable future.

FINANCIAL REPORTING STANDARD 102 - REDUCED DISCLOSURE EXEMPTIONS

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of SMJ Crown Limited which can be obtained from the parent company's registered office. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102:

(a) No cash flow statement has been presented for the company.

(b) Disclosures in respect of financial instruments have not been presented.

(c) No disclosure has been given for the aggregate remuneration of key management personnel.

SIGNIFICANT JUDGEMENTS AND ESTIMATES

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

(a) Critical accounting estimates and assumptions

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

(i) Useful economic lives of tangible assets and development costs

The annual depreciation charge for tangible assets and development costs are sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and physical condition of the assets. See the notes to the financial statements for the carrying amount of the assets and the accounting policy for the useful economic lives for each class of assets.

(ii) Residual value of freehold property

The directors take into account the residual value of the property based on estimates performed by themselves for the year ended 31 March 2025.

REVENUE RECOGNITION

Turnover is the fair value of the consideration received or receivable for goods and services provided in the normal course of the business, net of discounts, volume rebates and VAT. An element of the company's activities are carried out under long term contracts which are accounted for under section 23 of FRS102.

The management base their judgement of contract of costs and revenue on the latest information that is available, which will include contract valuations. Estimates and judgements are continually evaluated based on historical experience.

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.

Development costs are being amortised evenly over their estimated useful life of five years.

TANGIBLE FIXED ASSETS

Depreciation is provided at the following rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Freehold property

- 2% on cost annually

Short leasehold

- straight line over the life of the lease from the date of acquisition

Plant and machinery

- 15% reducing balance monthly

Fixtures and fittings

- 25% reducing balance monthly

Motor vehicles

- 20-33% reducing balance monthly

Land is not depreciated.

Tangible fixed assets are stated at cost, deemed cost or valuation less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use, dismantling and restoration costs capitalised.

GOVERNMENT GRANTS

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred.

STOCKS

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Cost includes all direct costs.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

FINANCIAL INSTRUMENTS

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently measured at amortised cost.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

CORPORATION TAX

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

Current or deferred taxation assets and liabilities are not discounted.

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

DEFERRED TAX

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

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

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

RESEARCH AND DEVELOPMENT

Research expenditure is written off in the period in which it is incurred.

Development expenditure incurred is capitalised as an intangible asset only when all of the following criteria are met:

(i) It is technically feasible to complete the intangible asset so that it will be available for use or sale;

(ii) There is the intention to complete the intangible asset and use or sell it;

(iii) There is the ability to use or sell the intangible asset;

(iv) The use or sale of the intangible asset will generate probable future economic benefits;

(v) There are adequate technical, financial and other resources available to complete the development and to use or sell the intangible asset; and

(vi) The expenditure attributable to the intangible asset during its development can be measured reliably.

Expenditure that does not meet the above criteria is expensed as incurred.

HIRE PURCHASE AND LEASING COMMITMENTS

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

Assets held under finance leases are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset.

Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in the statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administrated funds.

EMPLOYEE BENEFITS

The company provides a range of benefits to employees.

Short term benefits, including holiday pay, are recognised as an expense in the profit and loss account in the period which they are incurred.

PROVISIONS FOR LIABILITIES

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the Statement of comprehensive income in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charges to the provision carried in the Balance sheet.

3.

TURNOVER

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

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

31.3.25

31.3.24

£

£

Civil and Traffic

8,297,857

5,644,259

Technology, Loops and DCP

14,451,750

9,596,510

Signs and Lighting

13,723,661

11,096,022

External training course

56,835

59,464

36,530,103

26,396,255

All activities were carried out wholly within the United Kingdom.

4.	EMPLOYEES AND DIRECTORS

31.3.25

31.3.24

£

£

Wages and salaries

5,738,134

5,113,113

Social security costs

637,778

540,796

Other pension costs

542,975

110,604

6,918,887

5,764,513

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

31.3.25

31.3.24

Administrative and operational staff

122

115

31.3.25

31.3.24

£

£

Directors' remuneration

378,327

342,906

Information regarding the highest paid director is as follows:

31.3.25

31.3.24

£

£

Emoluments etc

120,827

103,819

5.	OPERATING PROFIT

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

31.3.25

31.3.24

£

£

Hire of plant and machinery

1,733,173

975,822

Other operating leases

403,306

249,606

Depreciation - owned assets

669,148

515,814

Loss/(profit) on disposal of fixed assets

5,769

(2,086

)

Development costs amortisation

216,195

263,147

Auditors' remuneration

12,600

13,400

6.

INTEREST RECEIVABLE AND SIMILAR INCOME

31.3.25

31.3.24

£

£

Deposit account interest

-

1,114

Corporation tax interest recd

3,006

-

3,006

1,114

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.3.25

31.3.24

£

£

Bank interest

224

1,457

Bank loan interest

9,440

11,432

Hire purchase interest

71,579

78,199

Interest payable

-

27,500

81,243

118,588

8.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the profit for the year was as follows:

31.3.25

31.3.24

£

£

Current tax:

UK corporation tax

70,035

170,701

Over/under provision in p/year

(170,701

)

-

Total current tax

(100,666

)

170,701

Deferred tax

-

13,850

Tax on profit

(100,666

)

184,551

RECONCILIATION OF TOTAL TAX (CREDIT)/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:

31.3.25

31.3.24

£

£

Profit before tax

882,540

397,542

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

220,635

99,386

Effects of:

Expenses not deductible for tax purposes

62,283

50,534

Depreciation in excess of capital allowances

8,634

38,758

Utilisation of tax losses

(61,987

)

-

Future changes in tax rates

-

(4,127

)

Research and development

(159,530

)

-

Adjustment relating to prior period

(170,701

)

-

Total tax (credit)/charge

(100,666

)

184,551

9.

DIVIDENDS

31.3.25

31.3.24

£

£

Ordinary shares of £1 each

Interim

882,000

150,000