REGISTERED NUMBER: 06236495 (England and Wales)

Walters Asset Management Limited

Strategic Report, Report of the Directors and

Audited Financial Statements

for the Year Ended 28 February 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

9

Statement of Financial Position

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

DIRECTORS:

S C Llewellyn

M E R Llewellyn

C Chambers

P H Richards

SECRETARY:

M E R Llewellyn

REGISTERED OFFICE:

Hirwaun House

Hirwaun Industrial Estate

Hirwaun

Aberdare

CF44 9UL

REGISTERED NUMBER:

06236495 (England and Wales)

AUDITORS:

Xeinadin Audit Limited

Chartered Accountants

& Statutory Auditors

Suite 2d

Building 1 Eastern Business Park

St Mellons

Cardiff

South Glamorgan

CF3 5EA

SOLICITORS:

Hugh James

Two Central Square

Cardiff

CF10 1FS

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

REVIEW OF BUSINESS

The annexed financial statements indicate the results for the year along with the financial standing and accounting details of the company.

The company has a strong order book with good visibility on a portfolio of projects for the next financial year. Continued Government investment in major rail and road projects provide many opportunities for the company to consolidate its position in the market. Whilst operating margins continue to face downward pressure the Directors are confident in the financial performance of the business moving forward.

Key financial highlights

The key financial highlights are as follows:

2025

2024

2023

2022

£'000

£'000

£'000

£'000

Turnover

12,749

15,936

11,649

2,587

Gross profit

3,479

4,469

3,210

754

Profit before tax

3,783

4,846

3,260

752

PRINCIPAL RISKS AND UNCERTAINTIES

The interest rate environment and continued inflationary pressure have significant influence on investment decisions. Uncertainty, and fiscal measures introduced by the Government, also have a significant part to play in the company's ongoing investment plans. The macro-economic environment coupled with delays in regulatory consenting has led to many long-term delays on new projects being brought forward.

ON BEHALF OF THE BOARD:

M E R Llewellyn - Secretary

24 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.

FUTURE DEVELOPMENTS

Long term relationships with Tier One contractors have proven key in developing a long-term pipeline of projects. National and Local Government investment plans for major infrastructure, flood elevation and coal tip reclamation provides a positive outlook for the business and the directors continue to strive to ensure the company is well placed to take advantage of these opportunities.

DIRECTORS

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

S C Llewellyn

M E R Llewellyn

C Chambers

P H Richards

FINANCIAL INSTRUMENTS

The company's principal financial instruments comprise of bank balances, trade debtors, trade creditors and group inter company loans. The main purpose of these instruments is to raise funds for the company's operations and to finance the company's operations.

Due to the nature of the financial instruments used by the company there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Financial support from parent and other subsidiary undertakings is provided and available to support financing the company's operations.

DIRECTORS' LIABILITY INSURANCE

A liability insurance policy was in force during the financial year for the benefit of the directors of the company.

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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, Xeinadin Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

M E R Llewellyn - Secretary

24 November 2025

Opinion

We have audited the financial statements of Walters Asset Management Limited (the 'company') for the year ended 28 February 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 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 three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors' responsibilities for the audit of the financial statements

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

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

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

- The nature of the industry and sector, control environment and business performance;

- Results of the enquiries of management about their own identification and assessment of the risks of

irregularities;

- Any matters we have identified having obtained and reviewed the company's documentation of their

policies and procedures relating to:

-- identifying, evaluating and complying with laws and regulations and whether they were aware of any

instance 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.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of income.. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, health and safety and tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.

Audit response to risks identified

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;

- reviewing correspondence with HMRC; 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.

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

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error.

As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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.

Catherine Ingram FCCA (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited

Chartered Accountants

& Statutory Auditors

Suite 2d

Building 1 Eastern Business Park

St Mellons

Cardiff

South Glamorgan

CF3 5EA

25 November 2025

TURNOVER

12,748,936

15,935,741

Cost of sales

9,269,564

11,467,062

GROSS PROFIT

3,479,372

4,468,679

Administrative expenses

104,282

4,032

3,375,090

4,464,647

Interest receivable and similar income

556,378

391,434

3,931,468

4,856,081

Interest payable and similar expenses

4

31,830

10,457

PROFIT BEFORE TAXATION

5

3,899,638

4,845,624

Tax on profit

6

974,843

1,186,713

PROFIT FOR THE FINANCIAL YEAR

2,924,795

3,658,911

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,924,795

3,658,911

CURRENT ASSETS

Debtors

7

2,092,605

1,333,114

Cash and cash equivalents

12,485,273

10,264,094

14,577,878

11,597,208

CREDITORS

Amounts falling due within one year

8

2,318,387

2,584,342

NET CURRENT ASSETS

12,259,491

9,012,866

TOTAL ASSETS LESS CURRENT LIABILITIES

12,259,491

9,012,866

PROVISIONS FOR LIABILITIES

10

2,226,613

1,904,783

NET ASSETS

10,032,878

7,108,083

CAPITAL AND RESERVES

Called up share capital

11

1

1

Retained earnings

12

10,032,877

7,108,082

SHAREHOLDERS' FUNDS

10,032,878

7,108,083

The financial statements were approved by the Board of Directors and authorised for issue on 24 November 2025 and were signed on its behalf by:

M E R Llewellyn - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 March 2023

1

3,449,171

3,449,172

Changes in equity

Total comprehensive income

-

3,658,911

3,658,911

Balance at 29 February 2024

1

7,108,082

7,108,083

Changes in equity

Total comprehensive income

-

2,924,795

2,924,795

Balance at 28 February 2025

1

10,032,877

10,032,878

1.	STATUTORY INFORMATION

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

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d);

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a), 11.48(b) and 11.48(c);

•

the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;

•

the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23;

•

the requirement of paragraph 33.7.

The financial statements of the company are consolidated in the financial statements of G Walters (Holdings) Limited. These consolidated financial statements are available from its registered office, Hirwaun House, Hirwaun Industrial Estate, Hirwaun, Aberdare, CF44 9UL.

Significant judgements and estimates

In the application of the company's accounting policies, the management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the hire of plant and equipment is recognised based on the hire terms and the length of the hire, when the amount of revenue can be measured reliably, when it is probable that the economic benefits associated with the transactions will flow to the entity when the costs incurred or to be incurred in respect of the transaction can be measured.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

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.

Plant refurbishment provision

The company has a legal obligation to carry out the full refurbishment of leased plant and machinery in accordance with their operating lease agreements. Refurbishment expenditure provisions are accrued for in accordance with the stipulation that each item of plant is refurbished by the stated date in each agreement.

Any individual plant refurbishment provision is released once the renovation work has been completed or the commitment is confirmed to be discharged.

3.	EMPLOYEES AND DIRECTORS

There were no staff costs for the year ended 28 February 2025 nor for the year ended 29 February 2024.

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

28.2.25

29.2.24

Management

2

2

28.2.25

29.2.24

£

£

Directors' remuneration

-

-

4.

INTEREST PAYABLE AND SIMILAR EXPENSES

28.2.25

29.2.24

£

£

Other interest

31,830

10,457

5.	PROFIT BEFORE TAXATION

The profit is stated after charging/(crediting):

28.2.25

29.2.24

£

£

Hire of plant and machinery

8,371,598

10,069,101

Auditors' remuneration

4,250

4,000

Deposit account interest

(556,378

)

(391,434

)

Income from operating leases

(12,721,435

)

(15,923,370

)

6.

TAXATION

Analysis of the tax charge

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

28.2.25

29.2.24

£

£

Current tax:

UK corporation tax

974,910

1,186,713

Over provision of corporation

tax in a prior period

(67

)

-

Tax on profit

974,843

1,186,713

UK corporation tax has been charged at 25% (2024 - 24.49%).

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

28.2.25

29.2.24

£

£

Trade debtors

1,003

-

Amounts owed by group undertakings

298,952

378,930

Tax

886,409

-

Prepayments and accrued income

906,241

954,184

2,092,605

1,333,114

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

28.2.25

29.2.24

£

£

Trade creditors

75,417

17,185

Amounts owed to group undertakings

625,825

3,000

Tax

-

798,090

VAT

228,550

233,164

Accruals and deferred income

1,388,595

1,532,903

2,318,387

2,584,342

9.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

28.2.25

29.2.24

£

£

Within one year

2,793,895

8,296,722

Between one and five years

27,000

3,014,754

2,820,895

11,311,476

10.	PROVISIONS FOR LIABILITIES

28.2.25

29.2.24

£

£

Other provisions

2,226,613

1,904,783

Other

provisions

£

Balance at 1 March 2024

1,904,783

Provided during year

321,830

Balance at 28 February 2025

2,226,613

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

28.2.25

29.2.24

value:

£

£

1

Ordinary £1

£1

1

1

12.

RESERVES

Retained

earnings

£

At 1 March 2024

7,108,082

Profit for the year

2,924,795

At 28 February 2025

10,032,877

13.	ULTIMATE PARENT COMPANY

The company's parent undertaking at the balance sheet date was G Walters (Holdings) Limited, a company incorporated in the United Kingdom. Copies of the group accounts can be obtained from the registered office of Walters Asset Management Limited.

14.	RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

During the year the company had the following transactions with its fellow subsidiary and associated undertakings:-

28.2.25

29.2.24

£

£

Walters Plant Hire Limited - purchases and recharges

17,500

22,650

Walters U.K. Limited - sales

12,228,170

15,291,450

Walters Plant Hire Limited- sales

354,064

102,626

At the year end, the following amounts were owed by the company:

28.2.25

29.2.24

£

£

Walters U.K. Limited

-

-

Walters Plant Hire Limited

625,825

3,000

At the year end, the following amounts were owed to the company:

28.2.25

29.02.24

£

£

Walters U.K. Limited

297,066

324,990

Walters Plant Hire Limited

1,886

53,940

15.	ULTIMATE CONTROLLING PARTY

The ultimate controlling parties at the year end were the trustees: Gweirydd Walters, Sarah Llewellyn, Richard Walters and Peter Hurn, of the Gweirydd Walters (Discretionary) Settlement, the major shareholder of G Walters (Holdings) Limited.

The company's ultimate parent undertaking at the balance sheet date was G Walters (Holdings) Limited, a company incorporated in the United Kingdom.