REGISTERED NUMBER: 03551662 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

ARMORDUCT SYSTEMS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Income and Retained Earnings

10

Balance Sheet

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

15

DIRECTORS:

Mr A A Rowe

Mr S Hudson-Smith

REGISTERED OFFICE:

Milton Court

East Portway Business Park

Andover

Hampshire

SP10 3LU

REGISTERED NUMBER:

03551662 (England and Wales)

SENIOR STATUTORY AUDITOR:

Christopher Joyce FCCA

AUDITORS:

Hysons Audit Services Ltd, Statutory Auditor

14 London Street

Andover

Hampshire

SP10 2PA

The directors present their strategic report for the year ended 31 December 2024.

This report provides an overview of the company's performance, key strategies, principal risks, and outlook.

BUSINESS REVIEW

Principal Activity

Armorduct Systems Ltd is a project-led specialist in standard and bespoke cable management systems. The principal activity of Armorduct Systems Ltd is the manufacture and distribution of cable management systems.

Business Model

The business seeks to be the first-choice solution for all cable management needs.

Business Review

2024 was a year of investment and development for Armorduct. The Board of Directors and the Leadership Team focused on developing people, systems, and processes to allow the business to expand. Staff numbers grew during the year from 85 to 102. This was primarily within our manufacturing teams and production planning departments, to support the planned sales growth of 20%. We also chose to implement pay increases, above the minimum required, for the majority of our staff to aid with the steep increase in cost of living that we had seen across the previous year.

The previous year's investments in our distribution facility already started working, as desired, as we saw an increase in turnover of nearly 20%. Due to the increase in staff wages and an increase in carriage costs, we saw our gross profit drop from 37% to 34%. Other costs have continued to climb as we began to be affected by the nationwide increase in gas and electricity prices as our previous contracts came to an end. Despite these challenges we still succeeded in making a modest profit and we will continue to improve our efficiencies in order to improve our gross margin back to where we know it can be.

Key performance indicators

2024

2023

Measure

Debtor days

84 days

88 days

Average debtor payment days

Inventory days

114 days

120 days

Average stock days

Gross margin

34%

37%

Gross profit as % of turnover

PRINCIPAL RISKS AND UNCERTAINTIES

The company operates in a competitive market which leads pricing decisions. It is difficult to pass increases in costs such as steel, electricity and gas, and labour, on to the customer without considering the actions that competitors are taking. We are working instead to reduce costs by improving efficiencies within the manufacturing process.

Our sales turnover is a combination of direct supply to wholesalers supported by major project volumes. Projects are volatile and subject to change; they rarely start on time and are difficult therefore to budget for. We are developing our relationships with wholesalers to increase our stockholding as this business will enable us to continue supporting projects.

Credit Risk

In general, the preponderance of our customers are financially stable and good payers. We have a robust credit checking system and do not accept any new customers where we are unhappy with their credit rating. Irrecoverable debts cannot always be avoided due to our desire to collaborate with our smaller customers to develop mutually beneficial relationships. We wish to continue to do so but we must carefully balance this with our need to protect the company assets. In these cases, we offer reduced credit limits and shorter payment terms.

Liquidity Risk

Armorduct continues to hold a strong cashflow position even after considerable investment. As we continue to invest in new machinery, we are confident that we have ample resources available to us to support our everyday requirements.

FUTURE PROSPECTS

The year 2025 presents significant growth opportunities for the Company. We are forecasting a 15% increase in sales and have already commenced investment in additional facilities, having outgrown our existing manufacturing site. As part of our expansion strategy, we are broadening our product portfolio and have acquired an additional unit on the Pensnett Estate to support the manufacture and storage of these new lines.

In parallel, we are actively exploring expansion into the North of England. Plans are underway to establish a distribution centre in Warrington, which will enhance our ability to service customers across the North and Scotland more efficiently.

ON BEHALF OF THE BOARD:

Mr S Hudson-Smith - Director

16 September 2025

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the manufacture and retail of cable management systems.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

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 A A Rowe

Mr S Hudson-Smith

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, Hysons Audit Services Ltd, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr S Hudson-Smith - Director

16 September 2025

Opinion

We have audited the financial statements of Armorduct Systems Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Income and Retained Earnings, Balance Sheet, 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 December 2024 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.

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 four, 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

-

the Senior Statutory Auditor ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

-

we identified the laws and regulations applicable to the company through discussions with directors and other management and from our commercial knowledge and experience of the publishing sector;

-

we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and Financial Reporting Standard 102;

-

we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

-

identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

-

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

-

considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

-

performed analytical procedures to identify any unusual or unexpected relationships;

-

tested journal entries to identify unusual transactions;

-

assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

-

investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

-

agreeing financial statement disclosures to underlying supporting documentation;

-

reading the minutes of meetings of those charged with governance;

-

enquiring of management as to actual and potential litigation and claims; and

-

reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or 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.

Christopher Joyce FCCA (Senior Statutory Auditor)

for and on behalf of Hysons Audit Services Ltd, Statutory Auditor

14 London Street

Andover

Hampshire

SP10 2PA

21 September 2025

TURNOVER

4

9,818,984

8,244,350

Cost of sales

(6,395,813

)

(5,165,160

)

GROSS PROFIT

3,423,171

3,079,190

Administrative expenses

(3,425,181

)

(3,060,747

)

(2,010

)

18,443

Other operating income

60,218

-

OPERATING PROFIT

6

58,208

18,443

Interest receivable and similar income

7,646

11,744

65,854

30,187

Interest payable and similar expenses

7

(40,776

)

(17,898

)

PROFIT BEFORE TAXATION

25,078

12,289

Tax on profit

8

45,834

(73,706

)

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

70,912

(61,417

)

Retained earnings at beginning of year

2,998,536

3,059,953

RETAINED EARNINGS AT END OF YEAR

3,069,448

2,998,536

FIXED ASSETS

Tangible assets

9

1,815,764

1,151,980

CURRENT ASSETS

Stocks

10

1,015,793

992,394

Debtors

11

3,048,016

2,223,411

Cash at bank and in hand

475,259

1,210,037

4,539,068

4,425,842

CREDITORS

Amounts falling due within one year

12

2,261,206

2,043,992

NET CURRENT ASSETS

2,277,862

2,381,850

TOTAL ASSETS LESS CURRENT LIABILITIES

4,093,626

3,533,830

CREDITORS

Amounts falling due after more than one year

13

(769,991

)

(319,710

)

PROVISIONS FOR LIABILITIES

16

(253,987

)

(215,384

)

NET ASSETS

3,069,648

2,998,736

CAPITAL AND RESERVES

Called up share capital

17

122

122

Capital redemption reserve

18

78

78

Retained earnings

18

3,069,448

2,998,536

SHAREHOLDERS' FUNDS

3,069,648

2,998,736

The financial statements were approved by the Board of Directors and authorised for issue on 16 September 2025 and were signed on its behalf by:

Mr S Hudson-Smith - Director

Cash flows from operating activities

Cash generated from operations

1

(266,033

)

442,047

Interest paid

(40,776

)

(17,898

)

Tax paid

(22,043

)

(56,917

)

Net cash from operating activities

(328,852

)

367,232

Cash flows from investing activities

Purchase of tangible fixed assets

(1,011,139

)

(424,952

)

Sale of tangible fixed assets

4,900

-

Interest received

7,646

11,744

Net cash from investing activities

(998,593

)

(413,208

)

Cash flows from financing activities

Capital repayments in year

592,667

35,677

Net cash from financing activities

592,667

35,677

Decrease in cash and cash equivalents

(734,778

)

(10,299

)

Cash and cash equivalents at beginning of year

2

1,210,037

1,220,336

Cash and cash equivalents at end of year

2

475,259

1,210,037

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

2024

2023

£

£

Profit before taxation

25,078

12,289

Depreciation charges

343,547

340,129

Profit on disposal of fixed assets

(1,092

)

-

Finance costs

40,776

17,898

Finance income

(7,646

)

(11,744

)

400,663

358,572

Increase in stocks

(23,399

)

(94,184

)

(Increase)/decrease in trade and other debtors

(787,302

)

86,190

Increase in trade and other creditors

144,005

91,469

Cash generated from operations

(266,033

)

442,047

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

475,259

1,210,037

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

1,210,037

1,220,336

3.	ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

1,210,037

(734,778

)

475,259

1,210,037

(734,778

)

475,259

Debt

Finance leases

(488,479

)

(592,667

)

(1,081,146

)

(488,479

)

(592,667

)

(1,081,146

)

Total

721,558

(1,327,445

)

(605,887

)

1.	STATUTORY INFORMATION

Armorduct Systems Limited 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.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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.

Tangible fixed assets

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.

Improvements to property

-

20% on cost

Plant and machinery

-

25% on cost and 10% on cost

Motor vehicles

-

25% on cost

Office and computer equipment

-

33% 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.

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.

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.

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.

4.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2024

2023

£

£

United Kingdom

9,818,984

8,244,350

9,818,984

8,244,350

5.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

2,650,430

2,163,822

Social security costs

250,071

198,494

Other pension costs

161,282

123,044

3,061,783

2,485,360

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

2024

2023

Manufacturing

50

44

Transport

6

2

Warehousing

8

10

Directors

1

1

Accounts and administration

10

12

Sales

11

11

86

80

2024

2023

£

£

Directors' remuneration

95,000

90,937

Directors' pension contributions to money purchase schemes

-

28,663

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

Money purchase schemes

-

1

6.	OPERATING PROFIT

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

2024

2023

£

£

Hire of plant and machinery

9,114

8,941

Other operating leases

395,538

415,204

Depreciation - owned assets

135,801

184,241

Depreciation - assets on hire purchase contracts

207,746

155,889

Profit on disposal of fixed assets

(1,092

)

-

Auditor's remuneration

9,000

9,000

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Bank loan interest

40,623

17,898

Interest on Corporation Tax

153

-

40,776

17,898

8.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the profit for the year was as follows:

2024

2023

£

£

Current tax:

UK corporation tax

(84,437

)

37,303

Deferred tax

38,603

36,403

Tax on profit

(45,834

)

73,706

9.	TANGIBLE FIXED ASSETS

Office

Improvements

and

to

Plant and

Motor

computer

property

machinery

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 January 2024

303,078

2,503,638

301,441

389,105

3,497,262

Additions

8,795

906,376

84,900

11,068

1,011,139

Disposals

(35,038

)

-

-

-

(35,038

)

At 31 December 2024

276,835

3,410,014

386,341

400,173

4,473,363

DEPRECIATION

At 1 January 2024

199,114

1,742,687

149,367

254,114

2,345,282

Charge for year

32,803

189,787

63,362

57,595

343,547

Eliminated on disposal

(31,230

)

-

-

-

(31,230

)

At 31 December 2024

200,687

1,932,474

212,729

311,709

2,657,599

NET BOOK VALUE

At 31 December 2024

76,148

1,477,540

173,612

88,464

1,815,764

At 31 December 2023

103,964

760,951

152,074

134,991

1,151,980