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REGISTERED NUMBER: 03727617 (England and Wales)
























STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

LANGLEY WATERPROOFING SYSTEMS LIMITED

LANGLEY WATERPROOFING SYSTEMS LIMITED (REGISTERED NUMBER: 03727617)

CONTENTS OF THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2023










Page

Company Information 1

Strategic Report 2

Report of the Directors 5

Report of the Independent Auditors 7

Income Statement 10

Other Comprehensive Income 11

Balance Sheet 12

Statement of Changes in Equity 13

Notes to the Financial Statements 14


LANGLEY WATERPROOFING SYSTEMS LIMITED

COMPANY INFORMATION
For The Year Ended 31 December 2023







DIRECTORS: R N Williams
A Silvestri
D W Wincott





SECRETARY: Hp Secretarial Services Limited





REGISTERED OFFICE: Langley House Lamport Drive
Heartlands Business Park
Daventry
Northamptonshire
NN11 8YH





REGISTERED NUMBER: 03727617 (England and Wales)





AUDITORS: TC Group
1 Rushmills
Bedford Road
Northampton
Northamptonshire
NN4 7YB

LANGLEY WATERPROOFING SYSTEMS LIMITED (REGISTERED NUMBER: 03727617)

STRATEGIC REPORT
For The Year Ended 31 December 2023


The directors present their strategic report for the year ended 31 December 2023.

REVIEW OF BUSINESS
Langley Waterproofing Systems Limited is a subsidiary of Langley UK Limited. The company continued its principal activity throughout the year, engaged in the design, supply, and installation of specialist flat roofing systems, for the building and construction sector throughout the UK.

Throughout 2023 the Langley Board concentrated on consolidating its operating activities and agreed to implement a succession plan that would see Antonio Silvestri, current CEO of Langley UK Ltd, handing over responsibility for Langley UK's activities to Dean Wincott from January 2024. Antonio Silvestri and Roger Williams, current Langley UK Finance Director, are to leave the Langley UK Board and focus their efforts on expanding the trading activities of the parent company Cavello Group.

PRINCIPAL RISKS AND UNCERTAINTIES
Risk assessment is an ongoing process reviewed quarterly at Group Board Meetings. Principal risks of the business have been identified and recorded in a Risk Register which enables the directors to assess the adequacy and effectiveness of the measures for controlling the risk.

The key risks are:

COVID-19
Throughout 2023 the threat of COVID-19 has greatly diminished and there has been little to no impact on the operational performance of the business. That said, Directors are constantly aware of the potential impact that any new variant or strain could have on business activity within the UK and internationally and have developed contingency measures to protect staff and the business should the risk materialise.

The Russia Ukraine War
As a direct consequence of the conflict between Russia and Ukraine in Eastern Europe the business initially experienced supply chain shocks resulting in raw material price increases and finished product availability due to supply side constraints in its flat roofing business. However, throughout the trading year 2023 the business returned to normal trading conditions and has developed internal systems and procedures to mitigate any potential supply side effects in future. The Board will continue to monitor and regularly evaluate the political and environmental impacts of the ongoing war.

Building Safety Bill
The Bill sets out a new regulatory regime aimed at ensuring the safety of residents in residential buildings. As new legislation comes into force Directors are confident that the company's reputation for quality and compliance will help to differentiate its products and services further and generate more opportunity. Throughout its year of consolidation, the business has been proactive in reassuring its customers of its focus on system accreditation as well as the ongoing training and monitoring in support of its approved contractor network.


LANGLEY WATERPROOFING SYSTEMS LIMITED (REGISTERED NUMBER: 03727617)

STRATEGIC REPORT
For The Year Ended 31 December 2023

Health & Safety Risks
The company has a strong record of health & safety performance, and this is scrutinised at each Group and Operational Board meeting. Employee feedback and participation is actively encouraged at bi-monthly health and safety committee meetings. Training above the legal requirements is carried out, and independent internal audits of external sites are conducted monthly.

Exchange Risks
The company is exposed to currency movements on Euro purchases from Europe. The company uses forward currency contracts to mitigate against foreign exchange fluctuations.

Credit Risk
In view of the current economic environment the risk of bad debt receives strong focus. Reviewed and reported to Group and Operational Board this is an area where focus by our credit controllers ensures we remain close to our customers and can identify at an early stage, any warning signs.

Liquidity Risk
The company continues to have sufficient cash for its day-to-day business needs as well as continuing with its long-term business strategy and investments.

Sustainability and Environmental Impact
Directors recognise the increasing moral focus on sustainability socially, politically, and economically and the collective importance of counteracting the damaging effects of climate change. The company is making considerable investment to improve its environmental credentials and is committed to leveraging its Green Infrastructure expertise and technologies to play its part in tackling this global threat. Directors welcome the introduction of new legislation and directives designed to improve environmental living standards in the sectors the company serves.

In 2022 the company started its fleet conversion from petrol and diesel vehicles to hybrids and EV's. It has installed 10 electric charging points at Head Office with a further 8 charging points that are planned to be installed in 2024 and 2025 as well as introducing a salary sacrifice scheme to incentivise employees to adopt EV's. The conversion to EV's will continue and at the end of 2023 the company had 22 electric vehicles in the fleet. Throughout the 2023 year, the EV conversion policy has delivered the following CO2 carbon emissions reductions; for unleaded petrol vehicles the savings have been 1.928 tonnes of CO2 and for diesel vehicles 3.68 tonnes of CO2. A total of 5.60 tonnes saved.

Two 17.43 KWH rooftop PV systems were also installed on the premises of the company's two head office blocks in Daventry back in 2021. Over a two-year period, 2022 to 2023, the system has generated savings of 10.537 tonnes of CO2 emissions, equivalent to planting 637 trees.

In addition to driving Sustainability the company is committed to creating greater Social Value managed through its new Social Enterprise - Langley Training Services which has traded as a new entity throughout 2023. Its focus, as a Registered ESFA Training Provider, is to support apprentices, upskill existing employees and promote the design and installation of sustainable roof systems. It will also support tier one contractors and clients with greater community engagement and interaction.

FINANCIAL KEY PERFORMANCE INDICATORS
Management use a range of performance measures to monitor and manage the business. The key financial performance indicators are revenue, gross & net margins, and total net worth of the business.

KPI's 2023 2022

Turnover £33,210,667 £34,412,672
Gross profit % 45.01% 44.90%
Operating profit % 7.94% 10.36%
Net assets £7,487,002 £6,529,561

This report was approved by the board and signed on its behalf.


LANGLEY WATERPROOFING SYSTEMS LIMITED (REGISTERED NUMBER: 03727617)

STRATEGIC REPORT
For The Year Ended 31 December 2023

EMPLOYEES
Throughout 2023 the company continued with its growth plan and increased employee numbers by 4. More employees are expected next year in line with the company's growth plans.

ON BEHALF OF THE BOARD:





R N Williams - Director


14 November 2024

LANGLEY WATERPROOFING SYSTEMS LIMITED (REGISTERED NUMBER: 03727617)

REPORT OF THE DIRECTORS
For The Year Ended 31 December 2023


The directors present their report with the financial statements of the company for the year ended 31 December 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was the design, supply and marketing of specialist roofing products, materials, solutions and services for the building and construction sector throughout the UK.

DIVIDENDS
Total dividends paid in the year were £829,000 (2022: £500,000).

FUTURE DEVELOPMENTS
The directors are committed to long-term creation of shareholder value. Successful implementation of a growth strategy is resulting in good forecasts for 2024 in a highly competitive sector. Current performance levels and forecasts indicate the Company is on track to achieve expectations for the year. In addition, a long-term strategic plan has been developed with particular attention being paid to the growth of existing businesses, the continual development of new products and identification of synergetic acquisition targets.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

R N Williams
A Silvestri
D W Wincott

Other changes in directors holding office are as follows:

T A Kerr - resigned 31 August 2023

FINANCIAL INSTRUMENTS
The company utilises various financial instruments including loans, cash, and various items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these is to raise finance for the company's operations. The existence of these financial instruments exposes the company to a number of financial risks, which are described in more detail in the Strategic 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.

LANGLEY WATERPROOFING SYSTEMS LIMITED (REGISTERED NUMBER: 03727617)

REPORT OF THE DIRECTORS
For The Year Ended 31 December 2023


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, TC Group, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





R N Williams - Director


14 November 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
LANGLEY WATERPROOFING SYSTEMS LIMITED


Opinion
We have audited the financial statements of Langley Waterproofing Systems Limited (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2023 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
LANGLEY WATERPROOFING SYSTEMS LIMITED


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 five, 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 obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (UK GAAP and the Companies Act 2006) and the relevant tax compliance regulations in the UK.

We understood how the company is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through review of board minutes and discussions with those charged with governance.

We assess the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur, by discussion with management from various parts of the business to understand where they considered there was a susceptibility to fraud. We considered the procedures and controls that the company has established to prevent and detect fraud, and how these are monitored by management, and also any enhanced risk factors such as performance targets.

Based on our understanding, we designed our audit procedures to identify any non-compliance with laws and regulations identified in the paragraphs above.

We also performed audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
LANGLEY WATERPROOFING SYSTEMS LIMITED


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.




Dilun Mistry FCA (Senior Statutory Auditor)
for and on behalf of TC Group
1 Rushmills
Bedford Road
Northampton
Northamptonshire
NN4 7YB

19 November 2024

LANGLEY WATERPROOFING SYSTEMS LIMITED (REGISTERED NUMBER: 03727617)

INCOME STATEMENT
For The Year Ended 31 December 2023

2023 2022
Notes £    £    £    £   

TURNOVER 3 33,210,667 34,412,673

Cost of sales 18,263,724 18,959,668
GROSS PROFIT 14,946,943 15,453,005

Distribution costs 1,575,125 1,783,329
Administrative expenses 10,915,294 10,133,220
12,490,419 11,916,549
2,456,524 3,536,456

Other operating income 178,847 28,854
OPERATING PROFIT 5 2,635,371 3,565,310

Group loan write off 6 320,000 965,995
2,315,371 2,599,315


Interest payable and similar expenses 7 20,050 35,151
PROFIT BEFORE TAXATION 2,295,321 2,564,164

Tax on profit 8 508,880 286,739
PROFIT FOR THE FINANCIAL YEAR 1,786,441 2,277,425

LANGLEY WATERPROOFING SYSTEMS LIMITED (REGISTERED NUMBER: 03727617)

OTHER COMPREHENSIVE INCOME
For The Year Ended 31 December 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 1,786,441 2,277,425


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR

1,786,441

2,277,425

LANGLEY WATERPROOFING SYSTEMS LIMITED (REGISTERED NUMBER: 03727617)

BALANCE SHEET
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 - -
Tangible assets 11 110,892 100,005
110,892 100,005

CURRENT ASSETS
Stocks 12 2,106,000 3,924,758
Debtors 13 7,916,947 5,830,019
Cash at bank 2,347,516 2,687,868
12,370,463 12,442,645
CREDITORS
Amounts falling due within one year 14 4,975,738 5,988,089
NET CURRENT ASSETS 7,394,725 6,454,556
TOTAL ASSETS LESS CURRENT LIABILITIES 7,505,617 6,554,561

PROVISIONS FOR LIABILITIES 18 18,615 25,000
NET ASSETS 7,487,002 6,529,561

CAPITAL AND RESERVES
Called up share capital 19 1,000 1,000
Retained earnings 20 7,486,002 6,528,561
SHAREHOLDERS' FUNDS 7,487,002 6,529,561

The financial statements were approved by the Board of Directors and authorised for issue on 14 November 2024 and were signed on its behalf by:





R N Williams - Director


LANGLEY WATERPROOFING SYSTEMS LIMITED (REGISTERED NUMBER: 03727617)

STATEMENT OF CHANGES IN EQUITY
For The Year Ended 31 December 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2022 1,000 4,751,136 4,752,136

Changes in equity
Dividends - (500,000 ) (500,000 )
Total comprehensive income - 2,277,425 2,277,425
Balance at 31 December 2022 1,000 6,528,561 6,529,561

Changes in equity
Dividends - (829,000 ) (829,000 )
Total comprehensive income - 1,786,441 1,786,441
Balance at 31 December 2023 1,000 7,486,002 7,487,002

LANGLEY WATERPROOFING SYSTEMS LIMITED (REGISTERED NUMBER: 03727617)

NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2023


1. STATUTORY INFORMATION

Langley Waterproofing Systems 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 at the point of authorising the accounts, and for the foreseeable future, the directors consider the going concern assumption to still be appropriate. The directors acknowledge that given the currently rapidly changing business and social environment, there are likely to be significant unknown factors which may present themselves. Such factors are considered by the directors to represent a general inherent level of risk in relation to the going concern assumption albeit not quantifiable at this time

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)(iv), 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 requirement of paragraph 33.7.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the Company's accounting policies, 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.

The key source of estimation uncertainty that has a significant effect on the amounts recognised in the financial statements is the valuation of stock. Provision should be made when the cost is greater than the estimated selling price. Management are involved in making these decisions on a line by line basis.

LANGLEY WATERPROOFING SYSTEMS LIMITED (REGISTERED NUMBER: 03727617)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 December 2023


2. ACCOUNTING POLICIES - continued

Turnover
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Revenue from the sales of goods is recognised when all of the following conditions are satisfied:
- the Company has transferred the significant risks and rewards of ownership to the buyer
- the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold
- the amount of revenue can be reliably measured
- it is probable that the Company will receive the consideration due under the transaction
- the costs incurred or to be incurred in respect of the transaction can be measured reliably

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
- the amount of revenue can be measured reliably
- it is probable that the Company will receive the consideration due under the contract
- the stage of completion of the contract at the end of the reporting period can be measured reliably
- the costs incurred and the costs to complete the contact can be measured reliably

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 three years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Fixtures and fittings - 25% on cost
Motor vehicles - 25% on cost
Computer equipment - 33% on cost

Stocks
Stocks are valued at the lower of cost and estimated selling price, after making due allowance for obsolete and slow moving items.

LANGLEY WATERPROOFING SYSTEMS LIMITED (REGISTERED NUMBER: 03727617)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 December 2023


2. ACCOUNTING POLICIES - continued

Financial instruments
Basic financial assets, including trade and other receivables and cash and bank balances, are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Basic financial liabilities, including trade and other payables, and loans from fellow Group companies, 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 receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Financial assets and liabilities are offset and 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.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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.

LANGLEY WATERPROOFING SYSTEMS LIMITED (REGISTERED NUMBER: 03727617)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 December 2023


2. ACCOUNTING POLICIES - continued

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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.

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.

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:

2023 2022
£    £   
Roofing system income 33,041,596 34,220,143
Training income 169,071 192,530
33,210,667 34,412,673

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 4,690,223 4,227,324
Social security costs 599,722 552,562
Other pension costs 227,423 347,293
5,517,368 5,127,179

The average number of employees during the year was as follows:
2023 2022

Directors 4 4
Management 9 9
Administration 57 53
70 66

2023 2022
£    £   
Directors' remuneration 515,924 611,114
Directors' pension contributions to money purchase schemes 16,320 110,031

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

Money purchase schemes 2 2

LANGLEY WATERPROOFING SYSTEMS LIMITED (REGISTERED NUMBER: 03727617)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 December 2023


4. EMPLOYEES AND DIRECTORS - continued

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 351,634 413,618
Pension contributions to money purchase schemes 12,458 14,251

5. OPERATING PROFIT

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

2023 2022
£    £   
Hire of plant and machinery 5,386 11,978
Other operating leases 66,000 60,000
Depreciation - owned assets 57,997 60,590
Profit on disposal of fixed assets (1,862 ) -
Auditors' remuneration 16,500 9,900

6. EXCEPTIONAL ITEMS
2023 2022
£    £   
Group loan write off (320,000 ) (965,995 )

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank loan interest 2,353 2,771
Other interest 17,697 32,380
20,050 35,151

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 515,228 286,126
Prior year under/(over)
provision 38 -
Total current tax 515,266 286,126

Deferred tax (6,386 ) 613
Tax on profit 508,880 286,739

UK corporation tax has been charged at 23.50% (2022 - 19%).

LANGLEY WATERPROOFING SYSTEMS LIMITED (REGISTERED NUMBER: 03727617)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 December 2023


8. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 2,295,321 2,564,164
Profit multiplied by the standard rate of corporation tax in the UK of
23.500% (2022 - 19%)

539,400

487,191

Effects of:
Expenses not deductible for tax purposes 137,311 62,589
Income not taxable for tax purposes - 183,539
Adjustments to tax charge in respect of previous periods 38 -
Group relief (29,047 ) (222,898 )
Research & development (135,936 ) (223,682 )
Effects of changes in tax rate (2,886 ) -
Total tax charge 508,880 286,739

At Spring Budget 2021, the government announced an increase in the Corporation Tax main rate from 19% to 25% for companies with profits over £250,000. There is a small company rate of 19% for taxable profits under £50,000 and marginal relief available for profits falling between £50,000 - £250,000 with effect from 1 April 2023. Deferred tax has therefore been calculated at the future rate of 25%.

Therefore the effective rate for the year ended 31 December 2023 was 23.50%.

9. DIVIDENDS
2023 2022
£    £   
Ordinary shares of £1 each
Interim 829,000 500,000

10. INTANGIBLE FIXED ASSETS
Computer
software
£   
COST
At 1 January 2023
and 31 December 2023 60,000
AMORTISATION
At 1 January 2023
and 31 December 2023 60,000
NET BOOK VALUE
At 31 December 2023 -
At 31 December 2022 -

LANGLEY WATERPROOFING SYSTEMS LIMITED (REGISTERED NUMBER: 03727617)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 December 2023


11. TANGIBLE FIXED ASSETS
Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
COST
At 1 January 2023 159,449 61,676 111,484 332,609
Additions 23,896 - 45,022 68,918
Disposals - - (17,489 ) (17,489 )
At 31 December 2023 183,345 61,676 139,017 384,038
DEPRECIATION
At 1 January 2023 117,723 44,301 70,580 232,604
Charge for year 17,432 10,432 30,133 57,997
Eliminated on disposal - - (17,455 ) (17,455 )
At 31 December 2023 135,155 54,733 83,258 273,146
NET BOOK VALUE
At 31 December 2023 48,190 6,943 55,759 110,892
At 31 December 2022 41,726 17,375 40,904 100,005

12. STOCKS
2023 2022
£    £   
Stocks 2,106,000 3,924,758

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 4,684,895 4,059,482
Amounts owed by group undertakings 1,710,558 1,161,995
Other debtors 929,956 58,473
Prepayments 591,538 550,069
7,916,947 5,830,019

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 15) - 104,167
Trade creditors 2,485,473 4,720,045
Amounts owed to group undertakings 91,171 28,000
Corporation tax 280,443 96,126
Social security and other taxes 139,796 142,443
VAT 137,522 166,670
Other creditors (366 ) 24,045
Accruals and deferred income 1,841,699 706,593
4,975,738 5,988,089

LANGLEY WATERPROOFING SYSTEMS LIMITED (REGISTERED NUMBER: 03727617)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 December 2023


15. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans - 104,167

16. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 50,618 70,421
Between one and five years 49,000 99,618
99,618 170,039

17. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank loans - 104,167

The CBILS bank loan is secured by a debenture in favour of Nat West Bank PLC. It is also guaranteed by the Secretary of State for Business, Energy and Industrial Strategy.

The invoice factoring account is secured by way of a fixed and floating charge over the assets of the Company. At 31 December 2023 the balance on the account was £928,443 debtor (2022 £51,022 debtor).

18. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 18,615 25,000

Deferred
tax
£   
Balance at 1 January 2023 25,000
Credit to Income Statement during year (6,385 )
Balance at 31 December 2023 18,615

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
1,000 Ordinary £1 1,000 1,000

LANGLEY WATERPROOFING SYSTEMS LIMITED (REGISTERED NUMBER: 03727617)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 December 2023


20. RESERVES
Retained
earnings
£   

At 1 January 2023 6,528,561
Profit for the year 1,786,441
Dividends (829,000 )
At 31 December 2023 7,486,002

21. PENSION COMMITMENTS

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £187,815 (2022: £347,292).

Contributions of £nil were payable to the funds at the balance sheet date (2022: £24,378).

22. 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.

The company has transactions with non wholly owned subsidiaries within the group.

Transactions with these companies during the year ended 31 December 2023:

Sales/recharges £35,630 (2022: £544,671)
Purchases £627 (2022: £nil)

Balance at 31 December 2023 is £182,057 debit (2022: £65,528 debit)

Silvestri Properties Limiited is a connected company.

Rent paid to this company during the year ended 31 December 2023 was £66,000 (2022: £60,000).

During the year, a total of key management personnel compensation of £ 741,884 (2022 - £ 869,819 ) was paid.

23. ULTIMATE CONTROLLING PARTY

The controlling party is Langley UK Limited.

The ultimate controlling party is A Silvestri.

The smallest group for which consolidated financial statements are prepared is headed by and Cavello Group Limited (formerly known as Langley Corporation Limited) copies of these can be obtained from this parent company's registered office at Langley House, Lamport Drive, Heartland Business Park, Daventry, Northamptonshire, NN11 8YH.