Company Registration No. 15191540 (England and Wales)
SOPREMA INSULATION LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
Affinia
The Octagon
Suite E2, 2nd Floor
Middleborough
Colchester
CO1 1TG
SOPREMA INSULATION LIMITED
COMPANY INFORMATION
Directors
Mr L E Hoekstra
(Appointed 5 January 2024)
Mr D M Glattfelder
(Appointed 5 January 2024)
Mr P Bindschedler
(Appointed 5 January 2024)
Mr L B O Verheyden
(Appointed 5 January 2024)
Company number
15191540
Registered office
Celotex Lady Lane Industrial Estate
Hadleigh
Ipswich
England
IP7 6BA
Auditor
Affinia (Colchester)
The Octagon
Suite E2, 2nd Floor
Middleborough
Colchester
CO1 1TG
SOPREMA INSULATION LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of total comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Notes to the financial statements
12 - 22
SOPREMA INSULATION LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 1 -

The directors present the strategic report for the period ended 31 December 2024.

Review of the business

The principal activity of the company is that of manufacture of insulation products.

 

There have been no events since the Statement of Financial Position date which materially affect the position of the company. The directors' believe that assets, liabilities, equity, revenue and costs are all completely and accurately reported within these financial statements.

 

The directors anticipate that the company will continue to grow in the future at a rate at least equal to the market growth rate and confirms the full commitment to the growth ambitions.

Principal risks and uncertainties

The company's operation exposes it to a variety of financial risks including the effects of changes in price risks, credit risks and liquidity risks.

 

Credit Risk

 

The company's principal financial instruments are cash and trade debtors which represent the company's maximum exposure to credit risk. The company's credit risk is primarily due to its debtors. The company has credit procedures which include thoroughly due diligence within in-house credit management practices.

 

Liquidity Risk

 

The company's exposure to liquidity risk is limited, as at the year end the company held sufficient liquid assets to continue trading. The liquidity risk thereafter is directly linked to the companies' sales and profitability performance.

 

Price Risk

 

The company is exposed to increases in prices of supplier goods, deteriorating the gross profit margin in cases where the UK market (guided by evolution of overall UK Market Construction Unit Pricing evolution) doesn't have the same price elasticity as our suppliers have towards us.

Key performance indicators

The directors' continue to monitor the key performance indicators for the business which include Solvency, Liquidity, Gross Margin, Net Margin and Working Capital Requirement.

Other performance indicators

The company has achieved other indicators:.e.g. QHSE (incident log & prevention, quality management), OTIF/CSI service as well has further developed its presence and reliability in the insulation market as a primary partner.

SOPREMA INSULATION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 2 -
Section 172(1) Statement

 

During the year, the Directors have acted to promote the success of the Company for the benefit of its members as a whole.

 

Throughout the year, while discharging their duties, section 172(1) requires a Director to have regard to, among other matters, the;

 

■ Likely long-term consequences of any decisions made

■ Interests of the Company’s employees

■ Business relationships with suppliers and customers

■ Impact on the community and environment of the company's operations

■ Reputation for high standards of business conduct and

Need to act fairly between members of the company

 

The above points are mainly driven by a culture combining entrepreneurship with accountability, engagement and initiative for innovation. The purpose is to contribute positively to peoples live by ”Building For Life”, thus to do so by growing, amongst other activities. Soprema Insulation Limited also has a market presence in a profitable, sustainable, responsible and durable way.

 

The company and it’s Directors and Leadership have defined and continuously assess the strategy acting as a proxy to achieve the ambitions and deliver its purpose within the set-out culture. This strategy includes considerations on the business model as well as both urgent and long-term success factors. This includes but is not limited to capital allocation decisions, long term sustainability of business models as well as risk appetite of management..

 

The Directors and the Board are not only aware but also understanding the Section 172(1) requirements both as in spirit. Relevant training is available and followed as and when due to ensure required competency and capability.

 

The Board, Directors and Leadership have a multitude of multi-directional formal and informal information channels ensuring sufficient, correct and relevant information is both available for decision making as well as distribution throughout the Company as and when.

 

Board Meetings as well as Leadership meetings are noted. In the Leadership meetings with a main focus on actions and deliverables as well at their desired and envisioned outcomes. In line with certification and accreditation (such as but not limited to management processes as described in our ISO9001 accreditation) topics and items are taken up on the agenda and tackled. Conduct and adherence to key-policies such as (but not limited to) anti-bribery, and anti-corruption, modern slavery, human rights, diversity & fairness as well as tax policies are monitored and engaged at, to be adhered to throughout the Company.

 

The Board and the Directors are monitoring both in a formal and automated/digital way as well as by personal engagement (direct or through representation bodies and intermediaries) the Stakeholders perception, engagement and interactions with the Company. As and where applicable, the Board is ready to manage conflicts of interest with stakeholders in line with it’s own policies, procedures and standards.

On behalf of the board

Mr L B O Verheyden
Director
11 April 2025
SOPREMA INSULATION LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 3 -

The directors present their annual report and financial statements for the period ended 31 December 2024.

Results and dividends

The results for the period are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the period and up to the date of signature of the financial statements were as follows:

Mr L E Hoekstra
(Appointed 5 January 2024)
Mr D M Glattfelder
(Appointed 5 January 2024)
Mr P Bindschedler
(Appointed 5 January 2024)
Mr L B O Verheyden
(Appointed 5 January 2024)
Mr N J Cammack
(Appointed 5 October 2023 and resigned 5 January 2024)
Mr M S Chaldecott
(Appointed 5 October 2023 and resigned 5 January 2024)
Energy and carbon report
2024
Energy consumption
kWh
Aggregate of energy consumption in the year
7,069,285
2024
Emissions of CO2 equivalent
metric tonnes
Scope 1 - direct emissions
- Gas combustion
4,197.32
- Fuel consumed for owned transport
4,117.00
8,314.32
Scope 2 - indirect emissions
- Electricity purchased
-
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the company
-
Total gross emissions
8,314.32
Intensity ratio
Tonnes CO2e per m3 of gross products produced
0.00014896
Quantification and reporting methodology

We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting.

 

We used invoices from energy suppliers and meter usage trackers onsite as well as monthly meter readings to track usage. XPO tracking is used for mileage of vehicles and fuel consumption.

SOPREMA INSULATION LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 4 -
Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per meter cubed of gross products produced.

Measures taken to improve energy efficiency
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Incorporation

The company was incorporated on 5 October 2023 and commenced trading as Soprema Insulation Limited on 5 January 2024.

On behalf of the board
Mr L B O Verheyden
Director
11 April 2025
SOPREMA INSULATION LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 5 -

The directors are responsible for preparing the annual 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 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:

 

 

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.

SOPREMA INSULATION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SOPREMA INSULATION LIMITED
- 6 -
Opinion

We have audited the financial statements of Soprema Insulation Limited (the 'company') for the period ended 31 December 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including 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:

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 Auditor's 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 other information comprises the information included in the annual report other than the financial statements and our auditor's 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

SOPREMA INSULATION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SOPREMA INSULATION LIMITED
- 7 -
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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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.

Auditor's 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 auditor's 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.

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

SOPREMA INSULATION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SOPREMA INSULATION LIMITED
- 8 -

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 auditor's 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.

Shaun Roberts
Senior Statutory Auditor
For and on behalf of Affinia (Colchester)
14 April 2025
Chartered Accountants
Statutory Auditor
The Octagon
Suite E2, 2nd Floor
Middleborough
Colchester
CO1 1TG
SOPREMA INSULATION LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 9 -
Period
ended
31 December
2024
Notes
£
Turnover
3
78,884,743
Cost of sales
(67,718,352)
Gross profit
11,166,391
Administrative expenses
(14,594,370)
Operating loss
4
(3,427,979)
Interest payable and similar expenses
7
(588,746)
Loss before taxation
(4,016,725)
Tax on loss
8
-
0
Loss for the financial period
(4,016,725)

The income statement has been prepared on the basis that all operations are continuing operations.

SOPREMA INSULATION LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2024
31 December 2024
- 10 -
2024
Notes
£
£
Fixed assets
Intangible assets
9
2,635
Tangible assets
10
18,279,138
18,281,773
Current assets
Stocks
11
8,308,373
Debtors
12
40,587,618
Cash at bank and in hand
4,537,595
53,433,586
Creditors: amounts falling due within one year
13
(48,872,083)
Net current assets
4,561,503
Net assets
22,843,276
Capital and reserves
Called up share capital
15
26,860,001
Profit and loss reserves
(4,016,725)
Total equity
22,843,276
The financial statements were approved by the board of directors and authorised for issue on 11 April 2025 and are signed on its behalf by:
Mr L B O Verheyden
Director
Company registration number 15191540 (England and Wales)
SOPREMA INSULATION LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 5 October 2023
-
0
-
0
-
Period ended 31 December 2024:
Loss and total comprehensive income
-
(4,016,725)
(4,016,725)
Issue of share capital
15
26,860,001
-
26,860,001
Balance at 31 December 2024
26,860,001
(4,016,725)
22,843,276
SOPREMA INSULATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 12 -
1
Accounting policies
Company information

Soprema Insulation Limited is a private company limited by shares incorporated in England and Wales. The registered office is Celotex Lady Lane Industrial Estate, Hadleigh, Ipswich, England, IP7 6BA.

1.1
Reporting period

The financial statements have been prepared for an accounting period not equal to 12 months due to the current period being the first set of financial statements prepared by the company.

1.2
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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 £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Holding Soprema SA, tax identification number 558500187. These consolidated financial statements are available from the French registry office - https://www.infogreffe.fr and the companies registered office of 14 Rue de Saint Nazaire, 67100 Strasbourg, France.

1.3
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for at least 12 months from the date of signing the financial statements. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

SOPREMA INSULATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.4
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.

 

Turnover from the sale of insulation products is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.5
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.6
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
15% reducing balance
1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
5% straight line
Plant and equipment
15% reducing balance
Fixtures and fittings
10% reducing balance
Computers
25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

The land portion of the freehold land and buildings is not depreciated.

1.8
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

SOPREMA INSULATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

SOPREMA INSULATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.12
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

SOPREMA INSULATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

In preparing these financial statements, the directors have considered the requirement for any provision for impairment in respect of stock held at the balance sheet date. To identify any impairment, the consumption period of the stock is considered. Judgement is required to estimate the rate at which stock is depreciated based on slow turnover, for which the directors use their experience of the industry, anticipated sales patterns and potential costs to completion and disposals of the stock to estimate the achievable net realisable value.

3
Turnover

The total turnover of the company for the period has been derived from its principal activity, wholly undertaken in the United Kingdom.

4
Operating loss
2024
Operating loss for the period is stated after charging/(crediting):
£
Exchange gains
(1,202,745)
Research and development costs
8,254
Depreciation of owned tangible fixed assets
949,243
Profit on disposal of tangible fixed assets
(3,783)
Amortisation of intangible assets
879
Operating lease charges
189,584
SOPREMA INSULATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 17 -
5
Auditor's remuneration
2024
Fees payable to the company's auditor and associates:
£
For audit services
Audit of the financial statements of the company
32,000
For other services
All other non-audit services
4,995

Non audit services relates to preparation of the financial statements.

6
Employees

The average monthly number of persons (including directors) employed by the company during the period was:

2024
Number
Commercial & field Support
15
Administration
13
Distribution
16
Production
96
Total
140

Their aggregate remuneration comprised:

2024
£
Wages and salaries
6,537,218
Social security costs
808,682
Pension costs
241,125
7,587,025
7
Interest payable and similar expenses
2024
£
Interest payable to group undertakings
588,746
SOPREMA INSULATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 18 -
8
Taxation

The actual charge for the period can be reconciled to the expected credit for the period based on the profit or loss and the standard rate of tax as follows:

2024
£
Loss before taxation
(4,016,725)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00%
(1,004,181)
Tax effect of expenses that are not deductible in determining taxable profit
(45,325)
Unutilised tax losses carried forward
1,319,911
Permanent capital allowances in excess of depreciation
(270,405)
Taxation charge for the period
-
9
Intangible fixed assets
Software
£
Cost
At 5 October 2023
-
0
Additions - business combinations
3,514
At 31 December 2024
3,514
Amortisation and impairment
At 5 October 2023
-
0
Amortisation charged for the period
879
At 31 December 2024
879
Carrying amount
At 31 December 2024
2,635
SOPREMA INSULATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 19 -
10
Tangible fixed assets
Freehold land and buildings
Assets under construction
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
£
Cost
At 5 October 2023
-
0
-
0
-
0
-
0
-
0
-
0
Additions
1,698,948
243,407
79,187
-
0
346,501
2,368,043
Business combinations
14,324,327
-
0
2,483,082
42,292
10,637
16,860,338
At 31 December 2024
16,023,275
243,407
2,562,269
42,292
357,138
19,228,381
Depreciation and impairment
At 5 October 2023
-
0
-
0
-
0
-
0
-
0
-
0
Depreciation charged in the period
490,345
-
0
372,465
4,229
82,204
949,243
At 31 December 2024
490,345
-
0
372,465
4,229
82,204
949,243
Carrying amount
At 31 December 2024
15,532,930
243,407
2,189,804
38,063
274,934
18,279,138
11
Stocks
2024
£
Raw materials and consumables
3,848,777
Work in progress
4,325,608
Finished goods and goods for resale
133,988
8,308,373
12
Debtors
2024
Amounts falling due within one year:
£
Trade debtors
39,526,167
Other debtors
826,228
Prepayments and accrued income
235,223
40,587,618
SOPREMA INSULATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 20 -
13
Creditors: amounts falling due within one year
2024
£
Trade creditors
5,612,526
Taxation and social security
2,536,519
Other creditors
18,748,552
Accruals and deferred income
21,974,486
48,872,083
14
Retirement benefit schemes
2024
Defined contribution schemes
£
Charge to profit or loss in respect of defined contribution schemes
241,125

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

At the year end outstanding contributions were £37,040, these are included within accruals and deferred income.

15
Share capital
2024
2024
Ordinary share capital
Number
£
Issued and fully paid
Ordinary shares of £1 each
26,860,001
26,860,001

The share capital account represents the nominal value of the shares issued.

 

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company. All ordinary shares rank equally with regard to the company's residual assets.

 

Profit and loss account

 

Profit and loss account represents cumulative profits or losses of the company, net of dividends paid and other adjustments.

SOPREMA INSULATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 21 -
16
Acquisition

On 5 January 2024 the company acquired the trade and assets of Celotex from Saint-Gobain Construction Products UK Limited. This acquisition included the following assets and input of share capital.

Fair Value
£
Fixed assets
16,860,000
Inventories
10,000,000
Total identifiable net assets
26,860,000
Goodwill
-
Total consideration
26,860,000
Satisfied by:
£
Issue of shares
26,860,000
17
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
£
Within one year
28,606
Between two and five years
49,177
77,783
18
Related party transactions

Related party transactions and year-end balances were all with either companies wholly owned within the group headed by Holding Soprema SA ("Soprema Group") or with companies wholly owned within the Saint-Gobain Construction Products UK Limited group ("SGCP").

 

At year end, included within other debtors was amounts of £826,231 owed to related parties of SGCP. Included within other creditors was amounts due to related parties of SGCP of £562,409 and amounts due to connected companies within the Soprema Group of £18,181,068.

 

Transactions with connected companies through the Soprema group via the 75% shareholding held by Holding Soprema SA, in the year, were purchases of £105,893, interest paid on loans provided of £652,653 and recharged costs of £1,262,968.

 

Saint-Gobain Construction Products UK Limited are a 25% shareholder, transactions with related parties within this group in the year were sales, including recharges made of £2,863,802 and purchases, including recharged costs of £10,710,810.

SOPREMA INSULATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 22 -
19
Ultimate controlling party

The company is directly controlled by Holding Soprema SA, a company incorporated in France, holding 75% of the share capital.

 

The smallest group into which Soprema Insulation Limited is consolidated is Holding Soprema SA.

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