ACCOUNTS - Final Accounts preparation

Analysis of the maturity of loans is given below:

Registered number: 05426960

BLACKER SHEEP LTD

UNAUDITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025


BLACKER SHEEP LTD REGISTERED NUMBER:05426960

BALANCE SHEET

AS AT 31 MARCH 2025

		2025		2024
Note		£		£

Fixed assets
Tangible assets	4		106,434		85,883
			106,434		85,883
Current assets
Stocks	5	46,102		32,844
Debtors due within 1 year	6	111,332		163,474
Cash at bank and in hand		489		637
		157,923		196,955
Creditors: amounts falling due within one year	8	(252,368)		(254,003)
Net current liabilities			(94,445)		(57,048)
Total assets less current liabilities			11,989		28,835
Creditors: amounts falling due after more than one year	9		(132,825)		(46,425)
Provisions for liabilities
Deferred tax	12	-		(7,296)
			-		(7,296)
Net liabilities			(120,836)		(24,886)

Capital and reserves
Called up share capital	1,000	1,000
Profit and loss account	(121,836)	(25,886)
	(120,836)	(24,886)

Page 1


BLACKER SHEEP LTD REGISTERED NUMBER:05426960

BALANCE SHEET (CONTINUED)

AS AT 31 MARCH 2025

The director considers that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.

The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

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

The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 18 September 2025.

C S Halsey

Director

The notes on pages 3 to 14 form part of these financial statements.

Page 2


BLACKER SHEEP LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

1.	General information

Blacker Sheep Ltd is a private company, limited by shares, domiciled in England. The registered office address is Unit B Pipers Court, Pennygillam Industrial Estate, Launceston, Cornwall, PL15 7PJ.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The following principal accounting policies have been applied:

2.2

Going concern

The accounts at 31 March 2025 show a net liability position of £141,083. The director fully supports the company and it has adequate cashflow. They have, therefore concluded it is a going concern.

2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Company has transferred the significant risks and rewards of ownership to the buyer;

∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

2.4

Operating leases: the Company as lessee

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

2.5

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of income and retained earnings in the same period as the related expenditure.

Page 3


BLACKER SHEEP LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

2.9

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 4


BLACKER SHEEP LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.11

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Amortisation is provided on the following bases:

Website development

50%

straight line

2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

				Land and buildings	-	10% straight line
				Plant and machinery	-	10-25% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

2.13

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 5


BLACKER SHEEP LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.15

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

2.16

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.17

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

2.18

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Balance sheet when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Page 6


BLACKER SHEEP LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.18

Financial instruments (continued)

Impairment of financial assets

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 is recognised in profit or loss.

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Page 7


BLACKER SHEEP LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.18

Financial instruments (continued)

Financial liabilities

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

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

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

Employees

The average monthly number of employees, including directors, during the year was 12 (2024 - 14).

Page 8


BLACKER SHEEP LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

4.	Tangible fixed assets

	Land and buildings	Plant and machinery	Total
	£	£	£
Cost or valuation
At 1 April 2024	112,933	584,160	697,093
Additions	16,736	25,605	42,341
Disposals	-	(7,642)	(7,642)
At 31 March 2025	129,669	602,123	731,792
Depreciation
At 1 April 2024	94,392	516,818	611,210
Charge for the year on owned assets	3,992	16,924	20,916
Disposals	-	(6,768)	(6,768)
At 31 March 2025	98,384	526,974	625,358
Net book value
At 31 March 2025	31,285	75,149	106,434
At 31 March 2024	18,541	67,342	85,883

Assets held under hire purchase agreements are included in tangible fixed assets and are depreciated over their expected useful lives on the same basis as owned assets. The net book value of these assets at the year end was £15,062 (2024: £Nil). The corresponding liability is included in creditors.

Page 9


BLACKER SHEEP LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

5.	Stocks
		2025	2024
		£	£

Raw materials and consumables	9,599	10,440
Work in progress (goods to be sold)	36,503	22,404
	46,102	32,844

Debtors

					2025	2024
					£	£


Trade debtors	18,212	22,405
Amounts owed by group undertakings	70,682	120,349
Other debtors	20,247	16,105
Prepayments and accrued income	2,191	4,615
	111,332	163,474

7.	Cash and cash equivalents
		2025	2024
		£	£

Cash at bank and in hand	489	637
Less: bank overdrafts	(4,656)	(17,478)
	(4,167)	(16,841)

Page 10


BLACKER SHEEP LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

8.	Creditors: Amounts falling due within one year
		2025	2024
		£	£

Bank overdrafts	4,656	17,478
Bank loans	5,385	5,385
Other loans	40,584	8,245
Trade creditors	10,971	16,572
Other taxation and social security	15,886	11,939
Obligations under finance lease and hire purchase contracts	11,147	22,419
Other creditors	153,475	170,465
Accruals and deferred income	10,264	1,500
	252,368	254,003

The following liabilities were secured:
	2025	2024
	£	£


Obligations under finance lease and hire purchase contracts	11,147	22,419
	11,147	22,419

Details of security provided:

The finance lease obligation is secured upon the asset to which it relates.

Page 11


BLACKER SHEEP LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

9.	Creditors: Amounts falling due after more than one year
		2025	2024
		£	£

Bank loans	25,128	30,513
Other loans	92,910	-
Net obligations under finance leases and hire purchase contracts	14,787	15,912
	132,825	46,425

The following liabilities were secured:
	2025	2024
	£	£


Net obligations under finance leases and hire purchase contracts	14,787	15,912
	14,787	15,912

Details of security provided:

The finance lease obligation is secured upon the asset to which it relates.

Page 12


BLACKER SHEEP LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Amounts falling due within one year
Bank loans	5,385	5,385
Other loans	40,584	8,245
	45,969	13,630
Amounts falling due 1-2 years
Bank loans	5,385	5,385
Other loans	30,900	-
	36,285	5,385
Amounts falling due 2-5 years
Bank loans	16,154	16,154
Other loans	62,010	-
	78,164	16,154
Amounts falling due after more than 5 years
Bank loans	3,589	8,974
	3,589	8,974
	164,007	44,143

Within one year	11,147	22,419
Between 1-5 years	14,787	15,912
	25,934	38,331

Page 13


BLACKER SHEEP LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

12.	Deferred taxation

		2025
		£

	At beginning of year	(7,296)
	Charged to profit or loss	7,296
	At end of year	-

The deferred taxation balance is made up as follows:
	2025	2024
	£	£

Accelerated capital allowances	(26,609)	(18,249)
Tax losses carried forward	26,609	10,953
	-	(7,296)

13.	Pension commitments

The Company operates a defined contributions pension scheme. The pension cost charge represents contributions payable by the Company to the fund and amounted to £4,444 (2024 - £4,400) . Contributions totalling £841 (2024 - £806) were payable to the fund at the balance sheet date and are included in other creditors.

14.Director's personal guarantees

At the balance sheet date the Director had provided personal guarantees in the respect of other loans totalling £130,853 (2024: £Nil).
These guarantees have been given to secure the company’s obligations and remain in force as at the date of approval of these financial statements. No amounts have been called under these guarantees during the year.

15.	Controlling party

The parent company of Blacker Sheep Limited is The Natural Fibre Company Holdings Limited and its registered office is Unit B Pipers Close, Pennygillam Industrial Estate, Launceston, Cornwall, PL15 7PJ.

Page 14