REGISTERED NUMBER: 13167708 (England and Wales)

Group Strategic Report, Report of the Directors and

Audited Consolidated Financial Statements for the Year Ended 31 December 2024

for

Langford Group Ltd

Page

Group Strategic Report

1

Report of the Directors

2

Report of the Independent Auditors

3

Consolidated Statement of Comprehensive Income

6

Consolidated Balance Sheet

7

Company Balance Sheet

8

Consolidated Statement of Changes in Equity

9

Company Statement of Changes in Equity

10

Consolidated Cash Flow Statement

11

Notes to the Consolidated Cash Flow Statement

12

Notes to the Consolidated Financial Statements

13

The directors present their strategic report of the company and the group for the year ended 31 December 2024.

REVIEW OF BUSINESS

The directors are pleased to report a successful year for the group

The group has generated £13,896,858 (2023: £14,892,879) of turnover generating a profit before tax of £954,302 (2023: £1,510,531).

At the period end the group had shareholders funds of £3,931,802 (2023: £3,779,406) including distributable profits of £3,891,802 (2023: £3,739,406). The directors therefore believe the group's position to be satisfactory, especially as the group's current assets exceed its current liabilities by £1,921,424 (2023: £2,823,602).

The directors believe that there is a strong foundation to build the business further with sound strategic planning and investment opportunities.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors consider that the main risks facing the group are market conditions within the UK construction industry and geopolitical risks adversely affecting the UK economy and global supply chains.

The group aims to mitigate these risk by continuing to differentiate its proposition by delivering consistently high quality products and service levels, coupled with a strategy of continuous improvement and investment.

ON BEHALF OF THE BOARD:

Mr N Smerdon - Director

31 July 2025

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2024.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2024 will be £552,333.

DIRECTORS

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

Mr N Smerdon

Mr A Gibson

Mr R Gibson

Mr E Smerdon

Mr R J Smerdon

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group'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 group's auditors are aware of that information.

AUDITORS

Drummond Laurie CA are deemed to be reappointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:

Mr N Smerdon - Director

31 July 2025

Opinion

We have audited the financial statements of Langford Group Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 31 December 2024 and of the group's 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 group 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 group's and the parent 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 Group 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 Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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 two, 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 group's and the parent 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 group or the parent 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.

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.

Based on our understanding of the company, we identified that the principal risks of non-compliance with laws and regulations related to fraudulent manipulation of the financial statements, including the risk of override of controls, to reduce profits and tax liabilities. We determined that the most likely method of manipulation would be the posting of inappropriate journal entries. Audit procedures performed by the audit engagement team consisted of a review of large and unusual journal entries, challenging assumptions and judgements made by management in significant accounting estimates, discussions with management related to known or suspected instances of non-compliance with laws and regulations, review of Board minutes where available, and an evaluation of management controls designed to prevent

and detect irregularities.

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. Also, 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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Craig Clinton (Senior Statutory Auditor)

for and on behalf of Drummond Laurie CA

Statutory Auditor

Unit 5

Gateway Business Park

Beancross Road

Grangemouth

FK3 8WX

31 July 2025

TURNOVER

13,896,858

14,892,879

Cost of sales

(10,236,331

)

(10,689,719

)

GROSS PROFIT

3,660,527

4,203,160

Administrative expenses

(2,671,920

)

(2,668,581

)

988,607

1,534,579

Other operating income

3,334

3,268

OPERATING PROFIT

4

991,941

1,537,847

Interest receivable and similar income

31,248

16,256

1,023,189

1,554,103

Interest payable and similar expenses

5

(68,887

)

(43,572

)

PROFIT BEFORE TAXATION

954,302

1,510,531

Tax on profit

6

(249,573

)

(382,899

)

PROFIT FOR THE FINANCIAL YEAR

704,729

1,127,632

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

704,729

1,127,632

Profit attributable to:

Owners of the parent

704,729

1,127,632

Total comprehensive income attributable to:

Owners of the parent

704,729

1,127,632

FIXED ASSETS

Intangible assets

9

89,982

178,917

Tangible assets

10

2,581,376

1,634,180

Investments

11

-

-

2,671,358

1,813,097

CURRENT ASSETS

Stocks

12

2,096,746

2,302,743

Debtors

13

1,965,830

2,270,482

Cash at bank

1,790,253

1,578,509

5,852,829

6,151,734

CREDITORS

Amounts falling due within one year

14

(3,931,405

)

(3,328,132

)

NET CURRENT ASSETS

1,921,424

2,823,602

TOTAL ASSETS LESS CURRENT LIABILITIES

4,592,782

4,636,699

CREDITORS

Amounts falling due after more than one year

15

(491,959

)

(694,648

)

PROVISIONS FOR LIABILITIES

19

(169,021

)

(162,645

)

NET ASSETS

3,931,802

3,779,406

CAPITAL AND RESERVES

Called up share capital

20

40,000

40,000

Retained earnings

21

3,891,802

3,739,406

SHAREHOLDERS' FUNDS

3,931,802

3,779,406

The financial statements were approved by the Board of Directors and authorised for issue on 31 July 2025 and were signed on its behalf by:

Mr N Smerdon - Director

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

-

-

Investments

11

40,003

40,003

40,003

40,003

CREDITORS

Amounts falling due within one year

14

(3

)

(3

)

NET CURRENT LIABILITIES

(3

)

(3

)

TOTAL ASSETS LESS CURRENT LIABILITIES

40,000

40,000

CAPITAL AND RESERVES

Called up share capital

20

40,000

40,000

SHAREHOLDERS' FUNDS

40,000

40,000

Company's profit for the financial year

552,333

438,260

The financial statements were approved by the Board of Directors and authorised for issue on 31 July 2025 and were signed on its behalf by:

Mr N Smerdon - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

40,000

3,050,034

3,090,034

Changes in equity

Dividends

-

(438,260

)

(438,260

)

Total comprehensive income

-

1,127,632

1,127,632

Balance at 31 December 2023

40,000

3,739,406

3,779,406

Changes in equity

Dividends

-

(552,333

)

(552,333

)

Total comprehensive income

-

704,729

704,729

Balance at 31 December 2024

40,000

3,891,802

3,931,802

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

40,000

-

40,000

Changes in equity

Dividends

-

(438,260

)

(438,260

)

Total comprehensive income

-

438,260

438,260

Balance at 31 December 2023

40,000

-

40,000

Changes in equity

Dividends

-

(552,333

)

(552,333

)

Total comprehensive income

-

552,333

552,333

Balance at 31 December 2024

40,000

-

40,000

Cash flows from operating activities

Cash generated from operations

1

2,170,983

2,449,192

Interest paid

(43,247

)

(27,220

)

Interest element of hire purchase payments paid

(25,640

)

(16,352

)

Tax paid

(460,963

)

(393,736

)

Net cash from operating activities

1,641,133

2,011,884

Cash flows from investing activities

Purchase of tangible fixed assets

(1,232,563

)

(1,198,145

)

Sale of tangible fixed assets

4,697

18,333

Interest received

31,248

16,256

Net cash from investing activities

(1,196,618

)

(1,163,556

)

Cash flows from financing activities

New loans in year

-

400,000

Loan repayments in year

(158,367

)

(106,430

)

Capital repayments in year

27,894

(178,044

)

Amount introduced by directors

1,043,492

-

Amount withdrawn by directors

(593,457

)

(103,248

)

Equity dividends paid

(552,333

)

(438,260

)

Net cash from financing activities

(232,771

)

(425,982

)

Increase in cash and cash equivalents

211,744

422,346

Cash and cash equivalents at beginning of year

2

1,578,509

1,156,163

Cash and cash equivalents at end of year

2

1,790,253

1,578,509

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.12.24

31.12.23

£

£

Profit before taxation

954,302

1,510,531

Depreciation charges

346,557

368,536

Profit on disposal of fixed assets

(4,697

)

(3,081

)

Finance costs

68,887

43,572

Finance income

(31,248

)

(16,256

)

1,333,801

1,903,302

Decrease in stocks

205,997

103,911

Decrease in trade and other debtors

165,404

257,767

Increase in trade and other creditors

465,781

184,212

Cash generated from operations

2,170,983

2,449,192

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

1,790,253

1,578,509

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

1,578,509

1,156,163

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank

1,578,509

211,744

1,790,253

1,578,509

211,744

1,790,253

Debt

Finance leases

(355,581

)

(27,894

)

(383,475

)

Debts falling due within 1 year

(164,159

)

(41,161

)

(205,320

)

Debts falling due after 1 year

(480,048

)

199,528

(280,520

)

(999,788

)

130,473

(869,315

)

Total

578,721

342,217

920,938

1.	STATUTORY INFORMATION

Langford Group Ltd is a private company, limited by shares, domiciled in England, registration number 13167708. The registered office is Langley Sutton Court, Sutton Lane, Langley, England, SL3 8AR.

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.

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the company and all group undertakings. These are adjusted, where appropriate, to conform to group accounting policies. Acquisitions are accounted for under the acquisition method and goodwill on consolidation is capitalised and written off over five years from the year of acquisition. The results of companies acquired or disposed of are included in the profit and loss account after or up to the date that control passes respectively. As a consolidated profit and loss account is published, a separate profit and loss account for the parent company is omitted from the group financial statements by virtue of section 408 of the Companies Act 2006.

Related party exemption

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.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Turnover

Turnover represents net invoiced sales of flooring materials, excluding value added tax. Sales are recognised at the point at which the goods are delivered or the service is complete.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2014, is being amortised evenly over its estimated useful life of ten years.

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.

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

Tangible fixed assets and depreciation

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

25% on cost

Fixtures and fittings

-

33% on cost

Motor vehicles

-

25% on reducing balance

Tangible fixed assets are stated at cost less depreciation. Cost represent purchase price together with any incidental costs of acquisition.

The directors have considered the residual value of all tangible fixed assets, apart from land & buildings, to be immaterial and therefore these tangible fixed assets are depreciated to nil value.

Land is not depreciated and buildings will be depreciated at 2% when active use has been confirmed.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost is represented by purchase price.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Provisions

Provisions are recognised when the company has a legal or constructive obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation, and the amount has been reliably estimated. Provisions are not recognised for future operating losses. Provisions are discounted where the time value of money is material.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

Cash and cash equivalents

Cash and cash equivalents include cash at bank and in hand and highly liquid interest-bearing securities with maturities of three months or less. In the cash-flow statement, cash and cash equivalents are shown net of bank overdrafts, which are included as current borrowings in liabilities on the balance sheet.

3.	EMPLOYEES AND DIRECTORS

31.12.24

31.12.23

£

£

Wages and salaries

1,815,935

1,638,644

Social security costs

146,763

139,241

Other pension costs

25,185

21,999

1,987,883

1,799,884

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

31.12.24

31.12.23

Employees

48

51

The average number of employees by undertakings that were proportionately consolidated during the year was 43 (2023 - 46 ) .

31.12.24

31.12.23

£

£

Directors' remuneration

47,694

45,094

Directors' pension contributions to money purchase schemes

112

-

4.	OPERATING PROFIT

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

31.12.24

31.12.23

£

£

Depreciation - owned assets

120,423

88,289

Depreciation - assets on hire purchase contracts

164,944

120,062

Profit on disposal of fixed assets

(4,697

)

(3,081

)

Goodwill amortisation

23,750

95,000

Development costs amortisation

65,185

65,185

Auditors' remuneration

-

12,000

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.24

31.12.23

£

£

Other loan interest

43,247

27,220

Hire purchase

25,640

16,352

68,887

43,572

6.

TAXATION

Analysis of the tax charge

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

31.12.24

31.12.23

£

£

Current tax:

UK corporation tax

243,197

292,630

Over/underprovision

-

16,680

Total current tax

243,197

309,310

Deferred tax

6,376

73,589

Tax on profit

249,573

382,899

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.24

31.12.23

£

£

Profit before tax

954,302

1,510,531

Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 23.521 %)

238,576

355,292

Effects of:

Expenses not deductible for tax purposes

6,233

4,531

Income not taxable for tax purposes

(1,174

)

(1,705

)

Capital allowances in excess of depreciation

(439

)

(65,488

)

Deferred tax movement

6,377

73,589

Over/underprovision

-

16,680

Total tax charge

249,573

382,899

7.	INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME

As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements.