Quartzize Worktops Ltd - Limited company accounts 25.1

REGISTERED NUMBER: 11674896 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

FOR

QUARTZIZE WORKTOPS LTD

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

7

Income Statement

11

Other Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Cash Flow Statement

15

Notes to the Cash Flow Statement

16

Notes to the Financial Statements

18

DIRECTORS:

J Walsh

A L Evans

REGISTERED OFFICE:

Unit 2, Lonlas Business Park

Lonlas

Neath

SA10 6SN

REGISTERED NUMBER:

11674896 (England and Wales)

AUDITORS:

John F. Harvey Ltd

Dynevor House

5-6 De La Beche Street

Swansea

SA1 3HA

The directors present their strategic report for the year ended 31 March 2025.

REVIEW OF BUSINESS

Quartzize Worktops Ltd continued to operate within the kitchen worktop and home improvement market, specialising in the supply of premium quartz overlay worktops. In addition, the company offers a broader kitchen refurbishment service, providing replacement cupboard doors, appliances, sinks, taps, and other complementary products designed to give customers the feel of a 'new kitchen' at a fraction of the cost. The company serves customers across the UK, with operations centred at its head office in Neath, Wales.

During the year, the company focused on:

- Expanding its sales presence across the United Kingdom;

- Strengthening its internal systems to support continued rapid growth; and

- Leveraging the Quartzize brand through targeted social media advertising to attract new customers.

The year saw continued demand for affordable home improvement solutions. This was reflected in the increase in turnover, with costs rising in line with this growth.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors recognise that the company is exposed to a number of risks and uncertainties in the ordinary course of business. The principal risks include:

Market and Demand Risk: Sales volumes are not greatly influenced by consumer confidence since the decline in people moving homes has led to increased spending on their existing home and there is expectation of increased demand as the UK housing stock increases in volume.

Operational and Quality Control Risk: The business model depends on subcontracted surveyors and installers. Currently no problems have been experienced, but to safeguard the future the company is now training staff for their future requirements.

Reputation and Compliance Risk: Every company faces the risks of negative customer reviews which can directly impact new business generation. The company closely monitors negative customer feedback and resolves any issues as quickly as possible.

Supply Chain and Pricing Risk: Materials are sourced through global and UK suppliers. Material costs and availability are sensitive to supply chain disruption and foreign currency movements. The company closely monitors the situation by regular reviewing the situation and has supplier options globally.

Liquidity and Financial Risk: Liquidity and financial risk are minimised by the company through the use of strong working capital and minimising customer exposure.

The directors continue to monitor these risks closely and have taken steps to mitigate them through improved customer service processes, tighter cost controls and further investment in customer relationship management systems.

DEVELOPMENT AND PERFORMANCE

During the year, the company made significant progress in building capacity to support its growth. Investment was made in strengthening internal systems to improve efficiency in job scheduling, installation tracking, inventory management and in renting additional units to accommodate expansion. The company also continued to expand its workforce through the recruitment of additional sales representatives, aftersales staff, and factory and warehouse operatives. In addition, the company developed its marketing strategy with a particular emphasis on social media campaigns, which increased brand visibility and generated higher levels of customer enquiries.

Despite the challenges associated with the company’s rapid growth, performance during the year was strong, with tight control maintained over costs. This was reflected in an improvement in the gross margin percentage compared with the prior year.

At the year-end, the company remained in a strong financial position, with net assets of £3,313,477 (2024: £764,471) and cash balances of £3,046,139 (2024: £1,447,366), providing adequate liquidity to support ongoing operations. Despite industry wide challenges, the directors believe the company remains well positioned to continue its nationwide growth strategy, supported by its established brand, diverse product range, and strengthened internal systems.

FINANCIAL KEY PERFORMANCE INDICATORS

The directors monitor a range of financial key performance indicators (KPIs) to assess the company’s progress and financial health.

The principal KPIs used during the year are as follows:

2025

2024

Turnover

£28,001,530

£18,479,421

Net profit after tax

£2,919,006

£839,008

Gross profit margin

44.7%

42.2%

Net profit after tax

margin

10.4%

4.5%

Cash balances

£3,046,139

£1,447,366

The directors believe that these KPIs demonstrate the company’s ability to generate profitable growth while maintaining a strong balance sheet and adequate liquidity. Alongside these financial indicators, the directors also consider non-financial measures such as customer satisfaction levels, job completion rates and workforce development to provide a balanced view of overall performance.

ON BEHALF OF THE BOARD:

A L Evans - Director

17 September 2025

The directors present their report with the financial statements of the company for the year ended 31 March 2025.

DIVIDENDS

Interim dividends per share were paid as follows:

92500

- 30 June 2024

92500

- 30 September 2024

92500

- 31 December 2024

92500

- 31 March 2025

£370000

The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 March 2025 will be £ 370,000 .

RESEARCH AND DEVELOPMENT

The company does not currently undertake formal research and development activities. However, management continually reviews new product ranges and kitchen technologies to enhance customer choice and maintain competitiveness.

FUTURE DEVELOPMENTS

The directors plan to continue expanding the company’s presence across the UK through further investment in sales capability and storage facilities, while also enhancing internal systems to support the increasing volume of orders. In parallel, the company will strengthen its brand profile by investing in digital marketing and social media campaigns, with the aim of capturing a greater share of the home improvement market.

DIRECTORS

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

J Walsh

A L Evans

FINANCIAL INSTRUMENTS

The company’s operations give rise to a variety of financial risks, including price risk, credit risk, liquidity risk, and foreign exchange risk. The company does not engage in trading or speculative financial instruments and its risk management policies are focused on managing these exposures in the normal course of business.

Price Risk: The company is exposed to fluctuations in the cost of materials. These risks are managed through careful monitoring of supplier prices and no particular dependence on any supplier.

Credit Risk: Credit risk is limited as the company has strong reserves and does not extend credit to customers.

Liquidity and Cashflow Risks: These are managed by maintaining strong cash balances, which stood at £3,046,139 at the year-end (2024: £1,447,366). The company monitors cash flow closely to ensure funds are available to meet operational commitments.

Foreign Exchange Risk: Quartz is sourced from suppliers overseas. Where purchases are denominated in foreign currency, the company is exposed to fluctuations in exchange rates, which can affect purchase costs. The directors monitor exchange rate movements mitigate the risk through forward planning,supplier negotiations and use of UK suppliers.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the 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 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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, John F. Harvey Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

A L Evans - Director

17 September 2025

Opinion

We have audited the financial statements of Quartzize Worktops Ltd (the 'company') for the year ended 31 March 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 31 March 2025 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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.

Emphasis of matter

We draw attention to note 9 of the financial statements, which explains the restatement of the comparative figures for the year ended 31 March 2024. The prior year financial statements have been restated to correct the recognition of revenue and deferred income, to include work in progress, to reclassify a loan previously included in other debtors to the directors’ current account, and to ensure the gross presentation of income and credit card charges . Our opinion is not modified in respect of this matter.

Other information

The directors are responsible for the other information. The other information comprises the information in the 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 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 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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.

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.

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

- We obtained an understanding of the legal and regulatory frameworks that are applicable to the company.

- We determined that the most significant which are directly relevant to specific assertions in the financial statements are those related to the reporting framework, the Companies Act 2006 and relevant tax compliance legislation.

- We understood how they are complying with those legal and regulatory frameworks by making enquiries through discussion with management.

- We assessed the susceptibility of the financial statements to material misstatement, including how fraud might occur by meeting with management to understand where it is considered there was a susceptibility of fraud.

- Our audit planning identified fraud risks in relation to management override. We obtained an understanding of the processes and controls that the company has established to address the risks identified, or otherwise prevent, deter and detect fraud; and how management monitors those processes and controls.

- We designed our audit procedures to detect irregularities, including fraud. Our procedures include journal transaction testing, with a focus on large or unusual transactions based on our knowledge of the business, seeking substantiation for the accounting estimates during the year and challenging the assumptions made by management in their recognition. Our audit procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error.

- We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation

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.

Other matters - prior year financial statements unaudited

The financial statements of the company for the year ended 31 March 2024 were not audited. As part of our audit of the current year’s financial statements, we have, in accordance with International Standards on Auditing (UK), obtained sufficient appropriate audit evidence regarding the opening balances as at 1 April 2024. Our opinion is not modified in respect of this matter.

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.

John Husband FCA (Senior Statutory Auditor)

for and on behalf of John F. Harvey Ltd

Dynevor House

5-6 De La Beche Street

Swansea

SA1 3HA

17 September 2025

TURNOVER

28,001,530

18,479,421

Cost of sales

15,478,876

10,678,682

GROSS PROFIT

12,522,654

7,800,739

Administrative expenses

8,916,493

6,566,183

OPERATING PROFIT

5

3,606,161

1,234,556

Interest receivable and similar income

63,570

9,142

3,669,731

1,243,698

Interest payable and similar expenses

6

58,074

15,562

PROFIT BEFORE TAXATION

3,611,657

1,228,136

Tax on profit

7

692,651

389,128

PROFIT FOR THE FINANCIAL

YEAR

2,919,006

839,008

PROFIT FOR THE YEAR

2,919,006

839,008

OTHER COMPREHENSIVE INCOME

-

TOTAL COMPREHENSIVE

INCOME FOR THE YEAR

2,919,006

839,008

FIXED ASSETS

Intangible assets

10

22,398

9,173

Tangible assets

11

901,536

755,105

923,934

764,278

CURRENT ASSETS

Stocks

12

1,741,532

1,010,529

Debtors

13

1,030,845

562,057

Cash at bank

3,046,139

1,447,366

5,818,516

3,019,952

CREDITORS

Amounts falling due within one year

14

(3,203,589

)

(2,677,891

)

NET CURRENT ASSETS

2,614,927

342,061

TOTAL ASSETS LESS CURRENT

LIABILITIES

3,538,861

1,106,339

CREDITORS

Amounts falling due after more than one

year

15

-

(153,092

)

PROVISIONS FOR LIABILITIES

17

(225,384

)

(188,776

)

NET ASSETS

3,313,477

764,471

CAPITAL AND RESERVES

Called up share capital

18

100

Retained earnings

19

3,313,377

764,371

SHAREHOLDERS' FUNDS

3,313,477

764,471

The financial statements were approved by the Board of Directors and authorised for issue on 17 September 2025 and were signed on its behalf by:

A L Evans - Director

Called up

share

Retained

Total

capital

earnings

equity

£

Balance at 1 April 2023

100

152,363

152,463

Changes in equity

Profit for the year

-

839,008

Total comprehensive income

-

839,008

Dividends

-

(227,000

)

(227,000

)

Balance at 31 March 2024

100

764,371

764,471

Changes in equity

Profit for the year

-

2,919,006

Total comprehensive income

-

2,919,006

Dividends

-

(370,000

)

(370,000

)

Balance at 31 March 2025

100

3,313,377

3,313,477

Cash flows from operating activities

Cash generated from operations

1

3,422,793

1,891,249

Interest paid

(3,246

)

(3,574

)

Interest element of hire purchase

payments paid

(54,828

)

(11,988

)

Tax paid

(310,715

)

(65,647

)

Net cash from operating activities

3,054,004

1,810,040

Cash flows from investing activities

Purchase of intangible fixed assets

(20,650

)

-

Purchase of tangible fixed assets

(295,120

)

(214,322

)

Interest received

63,570

9,142

Net cash from investing activities

(252,200

)

(205,180

)

Cash flows from financing activities

Capital repayments in year

(400,774

)

(174,436

)

Amount introduced by directors

23,594

-

Amount withdrawn by directors

(455,851

)

(242,879

)

Equity dividends paid

(370,000

)

(227,000

)

Net cash from financing activities

(1,203,031

)

(644,315

)

Increase in cash and cash equivalents

1,598,773

960,545

Cash and cash equivalents at

beginning of year

2

1,447,366

486,821

Cash and cash equivalents at end of

year

2

3,046,139

1,447,366

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

2025

2024

as restated

£

Profit before taxation

3,611,657

1,228,136

Depreciation charges

369,020

298,381

Finance costs

58,074

15,562

Finance income

(63,570

)

(9,142

)

3,975,181

1,532,937

Increase in stocks

(731,003

)

(148,736

)

(Increase)/decrease in trade and other debtors

(54,306

)

91,289

Increase in trade and other creditors

232,921

415,759

Cash generated from operations

3,422,793

1,891,249

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 March 2025

31.3.25

1.4.24

£

Cash and cash equivalents

3,046,139

1,447,366

Year ended 31 March 2024

31.3.24

1.4.23

as restated

£

Cash and cash equivalents

1,447,366

486,821

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.24

Cash flow

At 31.3.25

£

Net cash

Cash at bank

1,447,366

1,598,773

3,046,139

1,447,366

1,598,773

3,046,139

Debt

Finance leases

(432,864

)

187,868

(244,996

)

(432,864

)

187,868

(244,996

)

Total

1,014,502

1,786,641

2,801,143

1.	STATUTORY INFORMATION

Quartzize Worktops 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.

The presentation currency of the financial statements is the Pound Sterling (£).

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.

Turnover

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

The company recognises turnover from the sale of goods and services when:

- the significant risks and rewards of ownership have transferred to the customer.

- the amount of revenue can be measured reliably.

- it is probable that the associated economic benefits will flow to the company

- the related costs can be measured with reliability.

In practice, this is typically the point at which the goods are delivered to the customer.

Deferred income

Customer deposits and advance billings in respect of goods or services not yet delivered are recognised as deferred income within creditors. These amounts are released to turnover in the period when the related goods or services are provided.

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 five years.

Tangible fixed assets

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

Improvements to property

-

10% on cost

Plant & machinery

-

25% on cost

Fixtures and fittings

-

25% on cost

Computer Equipment

-

25% on cost

Motor Vehicles

-

20% on cost

Stocks

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

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Work in progress (WIP) is valued based on the number of jobs in progress at the year end, average job costs, average surveyor fees and commission rates.

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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Operating Leases

Rentals under operating leases, where substantially all the risks and rewards of ownership remain with the lessor, are charged to the profit and loss account on a straight-line basis over the lease term, unless another systematic basis is more representative of the time pattern in which the benefits derived from the leased asset are consumed.

Hire Purchase Agreements

Assets acquired under hire purchase agreements are capitalised in the financial statements and depreciated over their useful economic lives. The interest element of the hire purchase payment is allocated to accounting periods to reflect a constant periodic rate of charge on the remaining balance of the liability.

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.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCE

In the application of the company’s accounting policies, management is required to make judgements, estimates and assumptions about the carrying amounts 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 considered 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 of revision and in future periods as appropriate.

The key sources of estimation uncertainty at the balance sheet date, which may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are as follows:

Valuation of work in progress (WIP)

WIP is valued based on the number of jobs in progress at the year end, average job costs, average surveyor fees and commission rates. As these are based on estimates at the reporting date, the actual results may differ once jobs are completed.

Inventory valuation

Management estimates whether inventory is carried at the lower of cost and net realisable value, including judgements on potential obsolescence, damage or slow-moving stock.

4.	EMPLOYEES AND DIRECTORS

2025

2024

as restated

£

Wages and salaries

2,992,294

1,629,533

Social security costs

303,311

158,508

Other pension costs

94,083

61,503

3,389,688

1,849,544

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

2025

2024

as restated

Management

7

Admin

5

4

Sales

12

4

After Sales

9

4

Factory Operatives

20

12

Warehouse Operatives

16

6

Drivers

6

5

Production/Plan check/Survey

7

4

Fitters

5

3

87

49

2025

2024

as restated

£

Directors' remuneration

21,666

21,841

Directors' pension contributions to money purchase schemes

33,686

28,887

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

5.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

as restated

£

Hire of plant and machinery

76,640

56,596

Other operating leases

492,142

602,215

Depreciation - owned assets

361,595

295,086

Patents and licences amortisation

95

Computer software amortisation

7,330

3,200

Auditors' remuneration

10,000

-

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

as restated

£

Bank loan interest

-

41

Corporation tax interest

3,246

3,533

Hire purchase

54,828

11,988

58,074

15,562

7.

TAXATION

Analysis of the tax charge

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

2025

2024

as restated

£

Current tax:

UK corporation tax

565,587

243,780

S.455 CTA 2010 tax

90,456

-

Total current tax

656,043

243,780

Deferred tax:

Deferred tax

36,608

131,634

Tax rate movement

-

13,714

Total deferred tax

36,608

145,348

Tax on profit

692,651

389,128

Reconciliation of total tax charge included in profit and loss

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

2025

2024

as restated

£

Profit before tax

3,611,657

1,228,136

Profit multiplied by the standard rate of corporation tax in the UK

of 25% (2024 - 25%)

902,914

307,034

Effects of:

Expenses not deductible for tax purposes

274

743

Capital allowances in excess of depreciation

(15,947

)

(131,634

)

Adjustments to tax charge in respect of previous periods

(321,654

)

67,637

Deferred tax movement

36,608

145,348

s.455 CTA 2010 tax

90,456

-

Total tax charge

692,651

389,128

8.

DIVIDENDS

2025

2024

as restated

£

Ordinary Shares shares of £1 each

Interim

370,000

227,000

9.	PRIOR YEAR ADJUSTMENT

During the preparation of the financial statements for the year ended 31 March 2025, management reviewed the accounting treatments adopted in prior years financial statements. As a result of this review, certain balances have been reassessed and the prior year comparatives have been restated in accordance with FRS 102 Section 10.

1. Revenue recognition and deferred income

In previous years, deposits and advance payments from customers were recognised as revenue when received, even where the related goods had not been delivered at the reporting date. Under FRS 102, such amounts should have been recognised as deferred income until delivery of the goods.

This adjustment affected:

- Year ended 31 March 2023: Deferred income of £1,026,044 should have been recognised, with a corresponding reduction in retained earnings at 1 April 2023.

- Year ended 31 March 2024: Deferred income of £1,286,618 was outstanding at the year end. Accordingly, turnover for the year has decreased by £260,574, being the net movement in deferred income during 2024 (£1,286,618 - £1,026,044).

2. Inventory and work in progress (WIP)

Work in progress at 31 March 2024 was not recognised, as the company only began calculating WIP during the current year. This has now been included in the restated 2024 closing stock figures. An increase of £433,383.

In addition, the figure for doors within stocks was previously included gross sale price of job in stock at the year end. The stock balance has been adjusted to reflect its net value a reduction of £443,355.

Therefore a net increase in closing stock of £9,972.

3. Directors' advances, credits and guarantees

In previous years, a loan made to A L Evans T/A Joes Doors, amounting to £227,135, had been classified within Other Debtors in the financial statements for the year ended 31 March 2024. This balance has now been reclassified as part of A L Evans director's current account. The comparatives have been adjusted to reclassify this amount. This has no impact on profit or net assets for the year ended 31 March 2024.

4. Gross presentation of income and credit card charges

In prior years, sales made by credit and debit card were recorded net of card processing fees. Management has revised this treatment and turnover is now reported gross, with the related card charges shown separately as an expense.. The prior year comparatives have ben restated to increase both turnover and administrative expenses by the amount of the card fees of £169,069.

Impact of restatement

The cumulative effect of these adjustments has been to reduce reported profit and net assets in the prior year. The impact is summarised below:

Reconciliation of opening reserves at 1 April 2023

Deferred Income

Retained Earnings

£

Previously stated at 1 April 2023

-

1,178,407

Adjustment - recognition of 2023
deferred income

1,026,044

(1,026,044

)

Restated at 1 April 2023

1,026,044

152,363

Reconciliation of closing reserves at 31 March 2024.

Turnover

Deferred Income

Closing Stock

Retained
Earnings

£

At 31 March 2024

18,570,926

-

1,020,501

2,060,961

Adjustment - recognition of 2023
deferred income

-

1,026,044

-

(1,026,044

)

Adjustment - recognition of 2024
adjustments

(91,505

)

260,574

(9,972

(270,546

)

Restated figures at 31 March 2024

18,479,421

1,286,618

1,010,529

764,371

Other
Debtors

ALE Director's
Current Account

Credit card fees

£

At 31 March 2024

292,733

23,597

46,539

Adjustment - recognition of 2023
deferred income

-

Adjustment - recognition of 2024
adjustment

(227,135

)

(227,135

)

169,069

Restated figures at 31 March 2024

65,598

(203,538

)

215,608

10.	INTANGIBLE FIXED ASSETS

Patents

and

Computer

licences

software

Totals

£

COST

At 1 April 2024

950

16,000

16,950

Additions

-

20,650

At 31 March 2025

950

36,650

37,600

AMORTISATION

At 1 April 2024

316

7,461

7,777

Amortisation for year

95

7,330

7,425

At 31 March 2025

411

14,791

15,202

NET BOOK VALUE

At 31 March 2025

539

21,859

22,398

At 31 March 2024

634

8,539

9,173

11.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

property

machinery

fittings

£

COST

At 1 April 2024

-

717,925

-

Additions

82,671

106,509

34,371

At 31 March 2025

82,671

824,434

34,371

DEPRECIATION

At 1 April 2024

-

436,300

-

Charge for year

8,267

168,558

6,827

At 31 March 2025

8,267

604,858

6,827

NET BOOK VALUE

At 31 March 2025

74,404

219,576

27,544

At 31 March 2024

-

281,625

-

Motor

Computer

vehicles

equipment

Totals

£

COST

At 1 April 2024

580,320

16,624

1,314,869

Additions

262,665

21,810

508,026

At 31 March 2025

842,985

38,434

1,822,895

DEPRECIATION

At 1 April 2024

116,064

7,400

559,764

Charge for year

168,597

9,346

361,595

At 31 March 2025

284,661

16,746

921,359

NET BOOK VALUE

At 31 March 2025

558,324

21,688

901,536

At 31 March 2024

464,256

9,224

755,105

12.

STOCKS

2025

2024

as restated

£

Stocks

1,066,397

577,146

Work-in-progress

675,135

433,383

1,741,532

1,010,529

13.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

as restated

£

Other debtors

149,866

65,598

Directors' current accounts

268,019

203,537

Directors' loan accounts

350,000

-

Prepayments

262,960

292,922

1,030,845

562,057

Included within other debtors is an amount of £39,868 (2024: £65,598) due from related parties. Further information on related party balances and transactions is provided in note 21.

14.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

as restated

£

Hire purchase contracts (see note 16)

244,996

279,772

Trade creditors

104,709

336,846

Tax

656,019

310,691

Social security and other taxes

19,950

11,116

Pension creditor

7,865

5,376

Wages

39,934

25,395

VAT

329,177

386,984

Other creditors

564

176

Directors' current accounts

3,731

21,506

Accrued expenses

218,712

13,411

Deferred income

1,577,932

1,286,618

3,203,589

2,677,891

15.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN

ONE YEAR

2025

2024

as restated

£

Hire purchase contracts (see note 16)

-

153,092

16.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2025

2024

as restated

£

Gross obligations repayable:

Within one year

277,812

322,281

Between one and five years

-

176,585

277,812

498,866

Finance charges repayable:

Within one year

32,816

42,509

Between one and five years

-

23,493

32,816

66,002

Net obligations repayable:

Within one year

244,996

279,772

Between one and five years

-

153,092

244,996

432,864

Non-cancellable

operating leases

2025

2024

as restated

£

Within one year

295,985

300,010

Between one and five years

485,208

797,453

781,193

1,097,463

The hire purchase obligations are secured on the related assets.

17.	PROVISIONS FOR LIABILITIES

2025

2024

as restated

£

Deferred tax

225,384

188,776

Deferred

tax

£

Balance at 1 April 2024

188,776

Charge to Income Statement during year

36,608

Balance at 31 March 2025

225,384

The amount of the net reversal of deferred tax expected to occur next year is £90,399 (2024: £16,601) relating to the reversal of existing timing differences on tangible fixed asset.

18.	CALLED UP SHARE CAPITAL

Allotted and issued:

Number:

Class:

Nominal

2025

2024

value:

as restated

£

100

Ordinary shares

£1

100

19.

RESERVES

Retained

earnings

£

At 1 April 2024

764,371

Profit for the year

2,919,006

Dividends

(370,000

)

At 31 March 2025

3,313,377

20.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31 March 2025 and 31 March 2024:

2025

2024

as restated

£

A L Evans

Balance outstanding at start of year

179,943

-

Amounts advanced

88,076

179,943

Amounts repaid

-

Amounts written off

-

Amounts waived

-

Balance outstanding at end of year

268,019

179,943

A L Evans

Balance outstanding at start of year

-

Amounts advanced

350,000

-

Amounts repaid

-

Amounts written off

-

Amounts waived

-

Balance outstanding at end of year

350,000

-

The director’s current account is overdrawn largely due to a loan made to A L Evans T/A Joe’s Doors. The balance is unsecured, repayable on demand and interest is charged at HMRC’s official rate..

The director’s loan account represents a separate loan advanced to A L Evans under an agreement requiring repayment by the end of 2025. The loan is unsecured and interest is charged at HMRC’s official rate.

The maximum aggregate amount outstanding on all loans and advances to the A L Evans during the year was £618,019 (2024: £179,943).

The director, A L Evans, is a related party by virtue of his directorship and shareholding in the company.

21.	RELATED PARTY DISCLOSURES

The company is related to Smiley Kitchens Ltd by virtue of common control. Mr J Walsh and Mr A Evans are both 50% shareholders of both companies. In addition, Mr J Walsh is a director of both companies.

Loans to related parties are as follows:

Smiley Kitchens

Ltd

£

Opening balance

65,598

Advances

-

Repayments

(33,500

)

Closing balance

39,868

No amounts were written off or forgiven during the year.

The directors consider that the terms of the loan are interest free, unsecured and repayable on demand.