ACCOUNTS - Final Accounts

Operating profit

The operating profit is stated after charging:

Registered number: SC100217

CARTMORE BUILDING SUPPLY COMPANY LIMITED

DIRECTORS' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2024

CARTMORE BUILDING SUPPLY COMPANY LIMITED

COMPANY INFORMATION

Directors	Mr R Purvis
	Mr G Banks
	Mr J Wardrope
	Mr C Purvis
	Mr J Fairley


Registered number	SC100217


Registered office	New Thistle House
	The Avenue
	Lochgelly
	Fife
	KY5 9HG


Independent auditors	Sumer Auditco Limited
	Chartered Accountants
	Pentland House
	Saltire Centre
	Glenrothes
	Fife
	KY6 2AH

CARTMORE BUILDING SUPPLY COMPANY LIMITED

CONTENTS

	Page
Strategic report	1 - 2
Directors' report	3 - 4
Independent auditors' report	5 - 8
Statement of comprehensive income	9
Statement of financial position	10
Statement of changes in equity	11
Statement of cash flows	12 - 13
Analysis of net debt	13
Notes to the financial statements	14 - 27

CARTMORE BUILDING SUPPLY COMPANY LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 OCTOBER 2024

Introduction

The directors have pleasure in presenting their strategic report for the year ended 31 October 2024

Business review

The principal activity of the Company during the period continued to be the supply of building materials.
Whilst the results for the period are disappointing, it is worth noting that the downturn in the house building sector has been the significant factor in this.
The business has developed over years to have a considerable role in the housing market meaning that high interest rates, both from the Bank of England and High Street lenders leading to reduced house purchases have caused a downturn in this area, which has obviously impacted negatively on the business.
The bad debts that the company has experienced in this financial year are also rooted in this sector.
Despite the difficult operating conditions, the company was still able to return a modest profit in the period.
During recent years including this period, the business has continued with investment in outlets, landscaping displays and plant and machinery, ensuring that it is positioning itself positively for when the general economy and the housebuilding sector specifically improves.
The directors consider the key performance indicators to be turnover, operating profit and working capital management.
Turnover has reduced by 14.2% from £18,613,419 to £15,972,434. Gross profit margin has increased from 16.1% to 17.2%. Net current assets decreased from £1,795,341 to £1,689,204 and net bank balances decreased by £290,320 during the year to 31 October 2024.
The directors acknowledge that trading will remain challenging until the house building sector shows growth but with the UK government’s housing targets also likely to have an impact in Scotland, especially with national builders, the directors believe that this is a sector which will return improved performance.
The directors are satisfied that this forthcoming year will return improving results due to continued investment anticipated housing growth and securing other contracts. Despite this qualified level of confidence, the directors are mindful of current sector challenges and economic and political factors which could potentially impact on the Company's trading.

Page 1

CARTMORE BUILDING SUPPLY COMPANY LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2024

Principal risks and uncertainties

The Company operates wholly in the supply of building materials and as such commercial risks include the level of construction and house building ongoing at any time along with individual consumer confidence which can impact on sales to individual households.
There continues to be pricing pressure in the sector requiring the considerable knowledge and experience of the directors to navigate these challenges.
There is a need both for the Company and the wider economy to see the housing and construction sectors return to growth and increased activity and with government targets to grow home ownership there is a belief that medium to long term growth is possible in this sector.
Despite this the Company are aware of the impacts that short term contractions in the market and developer consolidations can have on the business and these are being managed by a strong, experienced board of directors looking at innovative methods to solidify the business.
The Company's principal financial instruments comprise bank balances, loans to the company and hire purchase agreements. The main purpose of these instruments is to finance Company 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 detailed below.
In respect of bank balances, the liquidity risk is managed by operating within in a cash positive position to ensure there are enough funds to meet repayments of creditors.
In respect of loans these comprise of a bank loan. The interest rate on the loan is fixed. The Company manages the liquidity risk by ensuring there are sufficient funds to meet the payments.
In respect of hire purchase assets, the liquidity risk in respect of these is managed to ensure sufficient funds are available to meet repayments.

Safety and health, environment and quality
The Company recognises the importance of, and has policies and procedures in place to ensure its environmental, health and safety requirements are met at all times.

This report was approved by the board on 7 April 2025 and signed on its behalf.

Mr G Banks

Director

Page 2

CARTMORE BUILDING SUPPLY COMPANY LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 OCTOBER 2024

The directors present their report and the financial statements for the year ended 31 October 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 for the Company's financial statements and then apply them consistently;

∙make judgments 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 to 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.

Results and dividends

The profit for the year, after taxation, amounted to £18,527 (2023 - £341,203).

Particulars of dividends paid are detailed in the notes to the financial statements.

Directors

The directors who served during the year were:

Mr R Purvis

Mr G Banks

Mr J Wardrope

Mr C Purvis

Mr J Fairley

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Page 3

CARTMORE BUILDING SUPPLY COMPANY LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2024

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditors, Sumer Auditco Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 7 April 2025 and signed on its behalf.

Mr G Banks

Director

Page 4

CARTMORE BUILDING SUPPLY COMPANY LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CARTMORE BUILDING SUPPLY COMPANY LIMITED

Opinion

We have audited the financial statements of Cartmore Building Supply Company Limited (the 'Company') for the year ended 31 October 2024, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of cash flows, the Statement of changes in equity and the related notes, 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 October 2024 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 United Kingdom, including the Financial Reporting Council'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.

Page 5

CARTMORE BUILDING SUPPLY COMPANY LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CARTMORE BUILDING SUPPLY COMPANY LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual Report. 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. 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 course of 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.

Opinion 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 Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Strategic report and the Directors' report 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 Directors' report.

We have nothing to report in respect of the following matters in relation to which 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 Directors' responsibilities statement set out on page 3, 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 is 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.

Page 6

CARTMORE BUILDING SUPPLY COMPANY LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CARTMORE BUILDING SUPPLY COMPANY LIMITED (CONTINUED)

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 an Auditors' report 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

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 Auditors' report.

Page 7

CARTMORE BUILDING SUPPLY COMPANY LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CARTMORE BUILDING SUPPLY COMPANY LIMITED (CONTINUED)

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 an Auditors' report 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.

Mark Gibson (Senior statutory auditor)

for and on behalf of

Sumer Auditco Limited

Chartered Accountants

Pentland House

Saltire Centre

Glenrothes

Fife

KY6 2AH

7 April 2025

Page 8

CARTMORE BUILDING SUPPLY COMPANY LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 OCTOBER 2024

	2024	2023
	£	£


Turnover	4	15,972,434	18,613,419
Cost of sales		(13,218,092)	(15,615,082)
Gross profit		2,754,342	2,998,337
Administrative expenses		(2,691,928)	(2,523,124)
Operating profit	5	62,414	475,213
Interest receivable and similar income	8	-	1,132
Interest payable and similar expenses	9	(27,323)	(20,460)
Profit before tax		35,091	455,885
Tax on profit	10	(16,564)	(114,682)
Profit for the financial year		18,527	341,203

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 14 to 27 form part of these financial statements.

Page 9

CARTMORE BUILDING SUPPLY COMPANY LIMITED

REGISTERED NUMBER: SC100217

STATEMENT OF FINANCIAL POSITION

AS AT 31 OCTOBER 2024

		2024		2023
		£		£

Fixed assets
Intangible assets	12		7,917		8,917
Tangible assets	13		1,370,527		1,511,327
Investments	14		1,325		1,325
			1,379,769		1,521,569
Current assets
Stocks	15	734,312		845,817
Debtors: amounts falling due within one year	16	2,447,024		2,417,224
Cash at bank and in hand	17	1,641,716		1,932,036
		4,823,052		5,195,077
Creditors: amounts falling due within one year	18	(3,133,848)		(3,399,736)
Net current assets			1,689,204		1,795,341
Total assets less current liabilities			3,068,973		3,316,910
Creditors: amounts falling due after more than one year	19		(18,988)		(199,571)
Provisions for liabilities
Deferred tax	23	(241,229)		(224,665)
			(241,229)		(224,665)
Net assets			2,808,756		2,892,674

Capital and reserves
Called up share capital	24	18,500	18,500
Share premium account	25	68,500	68,500
Profit and loss account	25	2,721,756	2,805,674
		2,808,756	2,892,674

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 7 April 2025.

Mr R Purvis	Mr G Banks
Director	Director

The notes on pages 14 to 27 form part of these financial statements.

Page 10

CARTMORE BUILDING SUPPLY COMPANY LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 OCTOBER 2024

	Called up share capital	Share premium account	Profit and loss account	Total equity
	£	£	£	£
At 1 November 2023	18,500	68,500	2,805,674	2,892,674
Comprehensive income for the year
Profit for the year	-	-	18,527	18,527
Contributions by and distributions to owners
Dividends: Equity capital	-	-	(102,445)	(102,445)
At 31 October 2024	18,500	68,500	2,721,756	2,808,756

The notes on pages 14 to 27 form part of these financial statements.

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 OCTOBER 2023

	Called up share capital	Share premium account	Profit and loss account	Total equity
	£	£	£	£
At 1 November 2022	18,500	68,500	2,646,305	2,733,305
Comprehensive income for the year
Profit for the year	-	-	341,203	341,203
Contributions by and distributions to owners
Dividends: Equity capital	-	-	(181,834)	(181,834)
At 31 October 2023	18,500	68,500	2,805,674	2,892,674

The notes on pages 14 to 27 form part of these financial statements.

Page 11

CARTMORE BUILDING SUPPLY COMPANY LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 OCTOBER 2024

			2024	2023
			£	£

Cash flows from operating activities
Profit for the financial year	18,527	341,203
Adjustments for:
Amortisation of intangible assets	1,000	1,000
Depreciation of tangible assets	422,830	326,387
Profit on disposal of tangible assets	(732)	(64,838)
Interest paid	27,323	20,460
Interest received	-	(1,132)
Taxation charge	16,564	114,682
Decrease/(increase) in stocks	111,505	(15,106)
(Increase)/decrease in debtors	(29,800)	804,125
(Decrease) in creditors	(157,301)	(752,067)
Net cash generated from operating activities	409,916	774,714

Cash flows from investing activities
Purchase of tangible fixed assets	(287,048)	(992,560)
Sale of tangible fixed assets	5,750	77,500
Interest received	-	1,132
HP interest paid	(25,825)	(20,456)
Net cash from investing activities	(307,123)	(934,384)

Page 12

CARTMORE BUILDING SUPPLY COMPANY LIMITED

STATEMENT OF CASH FLOWS (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2024

		2024	2023
		£	£


Cash flows from financing activities
Repayment of loans	(8,649)	(12,346)
Repayment of/new finance leases	(280,521)	351,770
Dividends paid	(102,445)	(181,834)
Interest paid	(1,498)	(4)
Net cash used in financing activities	(393,113)	157,586
Net (decrease) in cash and cash equivalents	(290,320)	(2,084)
Cash and cash equivalents at beginning of year	1,932,036	1,934,120
Cash and cash equivalents at the end of year	1,641,716	1,932,036

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	1,641,716	1,932,036
	1,641,716	1,932,036

ANALYSIS OF NET DEBT

FOR THE YEAR ENDED 31 OCTOBER 2024


At 1 November 2023	Cash flows	At 31 October 2024
£	£	£

Cash at bank and in hand	1,932,036	(290,320)	1,641,716
Debt due after 1 year	(14,317)	6,899	(7,418)
Debt due within 1 year	(10,648)	1,750	(8,898)
Finance leases	(465,875)	280,521	(185,354)
	1,441,196	(1,150)	1,440,046

The notes on pages 14 to 27 form part of these financial statements.

Page 13

CARTMORE BUILDING SUPPLY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2024

1.	General information

The company is limited by shares and incorporated in Scotland; Registration Number: SC100217. The registered office address is New Thistle House, The Avenue, Lochgelly, Scotland, KY5 9HG.
The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The following principal accounting policies have been applied:

2.2

Turnover

Turnover 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. Turnover 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:

Sale of goods

Turnover from the sale 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 measured reliably;

∙it is probable that the Company will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

2.3

Operating leases: the Company as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

2.4

Leased assets: the Company as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Page 14

CARTMORE BUILDING SUPPLY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)

2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.7

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

2.8

Pensions

Defined contribution pension plan

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 profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Page 15

CARTMORE BUILDING SUPPLY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)

2.10

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

The estimated useful lives range as follows:

Patents

10% straight line

2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Leasehold property	-	20% straight line
Plant and machinery	-	20% straight line
Motor vehicles	-	20% straight line
Office equipment	-	20% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

2.12

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. Work in progress and finished goods include labour and attributable overheads.

At each reporting 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.

2.13

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 16

CARTMORE BUILDING SUPPLY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)

2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

2.15

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.16

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

2.17

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Statement of financial position when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

2.18

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 17

CARTMORE BUILDING SUPPLY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2024

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

The most significant estimations within the company's financial statements relates to depreciation of fixed assets. The directors review depreciation rates on a regular basis to ensure that the policy rates remain appropriate and fairly charge the cost of the fixed assets over their predicted useful lives for each specific category of fixed asset.
The directors also require to exercise judgement in assessing recoverability of trade debtors and make appropriate provision where their credit control procedures indicate that trade debtor balances may not be fully recoverable.
Other areas of significant estimation within the company's financial statement relate to the valuation of stock. The directors review the valuation methodology on a regular basis to ensure the carrying value of stock remains appropriate.

Turnover

The whole of the turnover is attributable to building supplies.

					2024	2023
					£	£

	Building supplies	15,972,434	18,613,419

All turnover arose within the United Kingdom.

	Fees payable to the Company's auditor and its associates for the audit of the Company's annual financial statements	9,500	8,000
	Depreciation of tangible fixed assets	422,830	326,387

Page 18

CARTMORE BUILDING SUPPLY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2024

Wages and salaries	1,002,514	1,065,769
Social security costs	101,283	108,439
Cost of defined contribution scheme	66,994	73,642
	1,170,791	1,247,850

The average monthly number of employees, including the directors, during the year was as follows:

	2024	2023
	No.	No.

Number of production staff	22	22
Number of administrative staff	2	2
Number of management staff	5	5

	29	29

7.	Directors' remuneration
		2024	2023
		£	£

Directors' emoluments	129,171	157,470
Company contributions to defined contribution pension schemes	44,448	44,448
	173,619	201,918

During the year retirement benefits were accruing to 3 directors (2023 - 3) in respect of defined contribution pension schemes.

8.	Interest receivable
		2024	2023
		£	£

Other interest receivable

1,132

Page 19

CARTMORE BUILDING SUPPLY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2024

9.	Interest payable and similar expenses
		2024	2023
		£	£

Bank interest payable	1,498	4
Finance leases and hire purchase contracts	25,825	20,456
	27,323	20,460



Total current tax	-	-

Deferred tax
Origination and reversal of timing differences	16,564	114,682
Total deferred tax	16,564	114,682


	Tax on profit	16,564	114,682

Profit on ordinary activities before tax

35,091

455,885

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)	8,773	86,618
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	7,791	7,229
Capital allowances for year in excess of depreciation	-	(6,688)
Adjustments to tax charge in respect of rate change	-	27,523
Total tax charge for the year	16,564	114,682

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 20

CARTMORE BUILDING SUPPLY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2024

11.	Dividends
		2024	2023
		£	£

Equity dividends on ordinary shares

102,445

181,834

12.	Intangible assets

		Patents
		£
	Cost
	At 1 November 2023	10,000
	At 31 October 2024	10,000
	Amortisation
	At 1 November 2023	1,083
	Charge for the year on owned assets	1,000
	At 31 October 2024	2,083
	Net book value
	At 31 October 2024	7,917
	At 31 October 2023	8,917

Page 21

CARTMORE BUILDING SUPPLY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2024

13.	Tangible fixed assets

	Leasehold property	Plant and machinery	Motor vehicles	Office equipment	Total
	£	£	£	£	£
Cost or valuation
At 1 November 2023	598,619	887,151	936,055	70,031	2,491,856
Additions	192,057	94,991	-	-	287,048
Disposals	(5,879)	(23,000)	-	-	(28,879)
At 31 October 2024	784,797	959,142	936,055	70,031	2,750,025
Depreciation
At 1 November 2023	242,481	416,401	258,483	63,164	980,529
Charge for the year on owned assets	122,413	133,615	164,046	2,756	422,830
Disposals	(1,176)	(22,685)	-	-	(23,861)
At 31 October 2024	363,718	527,331	422,529	65,920	1,379,498
Net book value
At 31 October 2024	421,079	431,811	513,526	4,111	1,370,527
At 31 October 2023	356,138	470,750	677,572	6,867	1,511,327

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
	2024	2023
	£	£


Plant and machinery	39,261	68,193
Motor vehicles	393,607	504,043
	432,868	572,236

14.	Fixed asset investments

		Trade investments
		£

	At 1 November 2023	1,325

Page 22

CARTMORE BUILDING SUPPLY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2024

15.	Stocks
		2024	2023
		£	£

	Finished goods and goods for resale	734,312	845,817

16.

Debtors

					2024	2023
					£	£


Trade debtors	1,987,528	2,048,309
Other debtors	101,884	100,500
Prepayments and accrued income	357,612	268,415
	2,447,024	2,417,224

17.	Cash and cash equivalents
		2024	2023
		£	£

	Cash at bank and in hand	1,641,716	1,932,036

18.	Creditors: Amounts falling due within one year
		2024	2023
		£	£

Bank loans	8,898	10,648
Trade creditors	2,837,316	2,944,894
Other taxation and social security	64,915	110,980
Net obligations under hire purchase contracts	173,784	280,621
Accruals and deferred income	48,935	52,593
	3,133,848	3,399,736

Net obligations under hire purchase contracts are secured by the relevant assets.

Page 23

CARTMORE BUILDING SUPPLY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2024

19.	Creditors: Amounts falling due after more than one year
		2024	2023
		£	£

Bank loans	7,418	14,317
Net obligations under hire purchase contracts	11,570	185,254
	18,988	199,571

Net obligations under hire purchase contracts are secured by the relevant assets.

Amounts falling due within one year
Bank loans	8,898	10,648
	8,898	10,648
Amounts falling due 1-2 years
Bank loans	7,418	10,648
	7,418	10,648
Amounts falling due 2-5 years
Bank loans	-	3,669
	-	3,669

	16,316	24,965

Within one year	173,784	280,621
Between 1-5 years	11,570	185,254
	185,354	465,875

Page 24

CARTMORE BUILDING SUPPLY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2024

22.	Financial instruments
		2024	2023
		£	£

Financial assets
Financial assets measured at fair value through profit or loss	1,641,716	1,932,036
Financial assets that are debt instruments measured at amortised cost	2,089,412	2,148,809
	3,731,128	4,080,845

	Financial liabilities
	Financial liabilities measured at amortised cost	3,038,986	3,435,734

	Financial assets measured at fair value through profit or loss comprise cash at bank and in hand.
	Financial assets measured at amortised cost comprise trade debtors, other debtors and loans.
	Financial liabilities measured at amortised cost comprise trade creditors, other creditors and loans.

23.	Deferred taxation

		2024
		£

	At beginning of year	(224,665)
	Charged to profit or loss	(16,564)
	At end of year	(241,229)

The provision for deferred taxation is made up as follows:
	2024	2023
	£	£

Accelerated capital allowances	(263,339)	(300,737)
Tax losses carried forward	22,110	76,072
	(241,229)	(224,665)

Page 25

CARTMORE BUILDING SUPPLY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2024

24.	Share capital
		2024	2023
		£	£

Allotted, called up and fully paid

15,995 (2023 - 15,995) Ordinary A shares of £1.00 each	15,995	15,995
1,850 (2023 - 1,850) Ordinary B shares of £1.00 each	1,850	1,850
555 (2023 - 555) Ordinary C shares of £1.00 each	555	555
100 (2023 - 100) Ordinary D shares of £1.00 each	100	100

	18,500	18,500

25.

Reserves

Share premium account

The capital reserve includes amounts arising on the acquisition of shares.

Profit and loss account

The profit and loss account includes all current and prior period retained profits and losses.

Contracted for but not provided in these financial statements

50,024

46,800

27.	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 £66,994 (2023 - £73,642). Contributions totalling £nil (2023 - £nil) were payable to the fund at the reporting date.

Not later than 1 year

25,000

Page 26

CARTMORE BUILDING SUPPLY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2024

29.	Related party transactions
	During the year, the Company entered into the following transactions with related parties:

		2024	2023
		£	£

Sales to other related parties	2,188,035	2,850,199
Purchases from other related parties	564,950	514,966
Net trading balances due from other related parties	221,392	410,763
Amounts due from other related parties	100,000	100,000
	3,074,377	3,875,928

Page 27