REGISTERED NUMBER: 02830877 (England and Wales)

RECO SURFACES LTD

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 DECEMBER 2024

Page

Company Information

1

Report of the Directors

2

Balance Sheet

4

Notes to the Financial Statements

5

DIRECTORS:

C R W Fleet

Mrs M R Fleet

C J R Fleet

E J R Lee

C R Kirkland

P H W Fleet

REGISTERED OFFICE:

Unit R1Havenside (EMAIL INVOICES)

Fishtoft Road

Boston

Lincolnshire

PE21 0AH

REGISTERED NUMBER:

02830877 (England and Wales)

AUDITORS:

Dexter & Sharpe Audit Services Ltd

(Statutory Auditor)

Rollestone House

Bridge Street

Horncastle

Lincolnshire

LN9 5HZ

The directors present their report with the financial statements of the company for the year ended 30 December 2024.

PRINCIPAL ACTIVITIES

The principal activities of the company in the year under review were those of manufacturing of wall and ceiling panels, plastic recycling and research and development.

DIRECTORS

The directors shown below have held office during the whole of the period from 31 December 2023 to the date of this report.

C R W Fleet

Mrs M R Fleet

C J R Fleet

E J R Lee

C R Kirkland

Other changes in directors holding office are as follows:

P H W Fleet - appointed 1 December 2024

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Dexter & Sharpe Audit Services Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

C J R Fleet - Director

31 July 2025

FIXED ASSETS

Intangible assets

3

105,174

58,031

Tangible assets

4

960,486

728,816

1,065,660

786,847

CURRENT ASSETS

Stocks

360,262

315,110

Debtors

5

1,083,467

876,626

Cash at bank and in hand

55,568

127,058

1,499,297

1,318,794

CREDITORS

Amounts falling due within one year

6

667,398

1,217,017

NET CURRENT ASSETS

831,899

101,777

TOTAL ASSETS LESS CURRENT LIABILITIES

1,897,559

888,624

CREDITORS

Amounts falling due after more than one year

7

(733,038

)

(338,442

)

ACCRUALS AND DEFERRED INCOME

(22,813

)

-

NET ASSETS

1,141,708

550,182

CAPITAL AND RESERVES

Called up share capital

10

3,357,888

3,213,290

Share premium

908,579

908,579

Retained earnings

(3,124,759

)

(3,571,687

)

SHAREHOLDERS' FUNDS

1,141,708

550,182

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 31 July 2025 and were signed on its behalf by:

C J R Fleet - Director

1.	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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

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.

Patents and licences are being amortised evenly over their estimated useful life of ten years.

Computer software is being amortised evenly over its estimated useful life of three years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

15% on reducing balance

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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.

In the current year, the directors have opted to show a deferred tax asset. This is because the company has secured a large contract which will take the company into profit in the coming year and generate growing profits over the succeeding years.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Hire purchase and leasing commitments

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

Pension costs and other post-retirement benefits

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

2.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 19 (2023 - 13 ) .

3.	INTANGIBLE FIXED ASSETS

Patents

and

Computer

licences

software

Totals

£

£

£

COST

At 31 December 2023

121,304

5,825

127,129

Additions

-

63,181

63,181

At 30 December 2024

121,304

69,006

190,310

AMORTISATION

At 31 December 2023

63,273

5,825

69,098

Amortisation for year

12,012

4,026

16,038

At 30 December 2024

75,285

9,851

85,136

NET BOOK VALUE

At 30 December 2024

46,019

59,155

105,174

At 30 December 2023

58,031

-

58,031

4.	TANGIBLE FIXED ASSETS

Improvements

to

Plant and

property

machinery

Totals

£

£

£

COST

At 31 December 2023

-

1,247,800

1,247,800

Additions

181,035

174,840

355,875

Disposals

-

(2,765

)

(2,765

)

At 30 December 2024

181,035

1,419,875

1,600,910

DEPRECIATION

At 31 December 2023

-

518,984

518,984

Charge for year

-

123,229

123,229

Eliminated on disposal

-

(1,789

)

(1,789

)

At 30 December 2024

-

640,424

640,424

NET BOOK VALUE

At 30 December 2024

181,035

779,451

960,486

At 30 December 2023

-

728,816

728,816

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade debtors

182,307

241,196

Other debtors

901,160

635,430

1,083,467

876,626

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Hire purchase contracts (see note 8)

140,214

166,730

Trade creditors

243,160

349,744

Taxation and social security

85,273

20,073

Other creditors

198,751

680,470

667,398

1,217,017

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2024

2023

£

£

Hire purchase contracts (see note 8)

140,358

268,902

Other creditors

592,680

69,540

733,038

338,442

8.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase

contracts

2024

2023

£

£

Net obligations repayable:

Within one year

140,214

166,730

Between one and five years

140,358

268,902

280,572

435,632

Non-cancellable

operating leases

2024

2023

£

£

Within one year

117,217

17,624

Between one and five years

350,467

13,867

467,684

31,491

9.	SECURED DEBTS

The following secured debts are included within creditors:

2024

2023

£

£

Hire purchase contracts

280,572

435,632

Loans included in 'Other Creditors' totalling £633,268 are secured via a fixed and floating charge over the company's assets.

Hire purchase creditors are secured over the assets financed.

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2024

2023

value:

£

£

3,213,290

Ordinary

£1

3,213,290

3,213,290

Allotted and issued:

Number:

Class:

Nominal

2024

2023

value:

£

£

144,598

VN shares

1

144,598

-

144,598 VN shares shares of 1 each were allotted at par during the year.

11.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Mrs Nicola Michelle Lenton F.C.C.A. (Senior Statutory Auditor)

for and on behalf of Dexter & Sharpe Audit Services Ltd

12.	CAPITAL COMMITMENTS

2024

2023

£

£

Contracted but not provided for in the

financial statements

126,867

-

13.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 30 December 2024 and 30 December 2023:

2024

2023

£

£

C J R Fleet

Balance outstanding at start of year

10,604

-

Amounts advanced

20,645

10,604

Amounts repaid

(20,901

)

-

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

10,348

10,604

14.	RELATED PARTY DISCLOSURES

During the year, a further £90,328 was advanced in loans by key management personnel and the same amount was repaid.. The remaining £50,000 (2023: £50,000) has had no date set for repayment and no interest is being charged. This amount is presented within creditors: amounts falling due after more than one year.

A loan of £10,604 extended to a member of KMP in 2023 was repaid and a further loan of £10,348 was extended with no interest charged.

15.	ULTIMATE CONTROLLING PARTY

The company is controlled by the M R Fleet settlement.