REGISTERED NUMBER: 12254249 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

COVERINGS LTD

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

A S Hinchliffe

T G Hewitt

REGISTERED OFFICE:

Lumina

Park Approach

Leeds

West Yorkshire

LS15 8GB

REGISTERED NUMBER:

12254249 (England and Wales)

ACCOUNTANTS:

Bohorun & Co Limited

6 Howley Park Business Village

Pullan Way

Morley

Leeds

West Yorkshire

LS27 0BZ

CURRENT ASSETS

Cash at bank and in hand

519

424

CREDITORS

Amounts falling due within one year

4

6,994,547

7,347,679

NET CURRENT LIABILITIES

(6,994,028

)

(7,347,255

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(6,994,028

)

(7,347,255

)

CREDITORS

Amounts falling due after more than one year

5

-

2,525,000

NET LIABILITIES

(6,994,028

)

(9,872,255

)

CAPITAL AND RESERVES

Called up share capital

15,000

15,000

Share premium

161,973

161,973

Retained earnings

(7,171,001

)

(10,049,228

)

SHAREHOLDERS' FUNDS

(6,994,028

)

(9,872,255

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2024.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2024 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 7 August 2025 and were signed on its behalf by:

B A Clarke - Director

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Critical accounting judgements and key sources of estimation uncertainty

The company makes estimates and assumptions concerning the future. The resulting accounting estimate will by definition seldom equal the related actual results.

Investments in subsidiaries

Investments in subsidiaries are measured at cost less impairment.

Financial instruments

Cash and Cash Equivalents

Cash and cash equivalents comprise cash in hand, and call deposits and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Share Capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Financial Assets

Basic financial assets including trade and other receivables are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest for a similar assets. Such assets are subsequently carried at amortised cost using effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss and any subsequent reversal is recognised in profit or loss.

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

Financial Liabilities

Basic financial liabilities, including trade and other payables, 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 receipts discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently carried at amortised cost, using effective interest rate method. Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Going concern

The company's ability to operate as a going concern. The board of Coverings Limited undertook an assessment of the ability of the company to continue in operation and meet its liabilities as they fall due. The company's assessment was made available to the directors of the subsidiary. The directors did consider that this assessment indicated the existence of a material uncertainty which may cast doubt about the company's ability to continue as a going concern. The directors have made appropriate enquiries of the company and have identified matters which impact their conclusion regarding the ability to continue as a going concern. The former subsidiary has provided this company with an undertaking that for at least 12 months from the date of approval of these financial statements, it will continue to make available such funds as are needed by the company and will not seek repayment of the amounts owed or further amounts made available.

For the year ending 31 December 2024 the company has made a profit for the financial period of £2,878,234 (Dec 2023- loss £5,134,554). The balance sheet as at 31 December 2024 shows an insolvent position of £6,994,021 (December 2023- deficit £9,872,255).

From the trading results obtained above it would seem to indicate that the company's ability to operate as a going concern may be inappropriate. The continuing ability of the company to trade as a going concern is linked to the non-withdrawal of creditor loans advanced to the company by its former subsidiary company.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 2 (2023 - 2 ) .

4.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Taxation and social security

6

-

Other creditors

6,994,541

7,347,679

6,994,547

7,347,679

5.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2024

2023

£

£

Other creditors

-

2,525,000

6.	SECURED DEBTS

The following secured debts are included within creditors:

2024

2023

£

£

Loan Notes

-

3,525,000