Sandmaster (UK) Holdings Limited Company accounts

COMPANY REGISTRATION NUMBER: 06404070

Sandmaster (UK) Holdings Limited

Financial Statements

31 December 2024

Sandmaster (UK) Holdings Limited

Financial Statements

Year ended 31 December 2024

Contents	Page

Officers and professional advisers	1

Strategic report	2

Directors' report	5

Independent auditor's report to the members	7

Statement of income and retained earnings	11

Statement of financial position	12

Statement of cash flows	13

Notes to the financial statements	14

Sandmaster (UK) Holdings Limited

Officers and Professional Advisers

The board of directors	Mr M J Crone
	Mr S N Gill

Registered office	Airfield Industrial Estate
	Hixon
	Staffordshire
	ST18 0PF

Auditor	Lindley & Co
	Chartered Certified Accountants & statutory auditor
	Suite 4 Europa House
	Europa Way
	Britannia Enterprise Park
	Lichfield
	Staffordshire
	WS14 9TZ

Bankers	Royal Bank of Scotland PLC
	30 Greengate Street
	Stafford
	ST16 2QG

Sandmaster (UK) Holdings Limited

Strategic Report

Year ended 31 December 2024

Business review

This strategic report aims to provide a comprehensive analysis of the business, detailing the development and performance of the business along with Key Performance Indicators and the principal risks the business faces.

Marketplace analysis

The current market remains highly competitive, but despite this, demand for our products continues to remain strong. 2024 proved to be an excellent year with a large improvement in activity versus the 2023 result. Whilst 2024 can be considered a good year, there are still opportunities for growth, particularly in emerging markets, where demand for our products is on the rise.

Swot analysis

Strengths: - Our organisation has a strong reputation for providing high-quality products and excellent customer service. - We have a well-established supply chain that ensures timely delivery of products to our customers. - Our organisation benefits from strong customer relationships that have been built over extended periods of time. - Sandmaster has a strong and loyal management team which helps steer the business forward. Weaknesses: - We have a limited presence in emerging markets, which requires further development. - The company faces the risk of competitive pressure, but with a solid reputation for quality products and customer service, we believe we can maintain our market share. Opportunities: - Emerging markets offer significant growth opportunities for our organisation. - There is a growing demand for eco-friendly and sustainable products, we are currently working on new product development and packaging solutions to assist us in reaching our targets in this area. The company is at the forefront of reducing the impact the manufacturing process may have on the environment. - Increased automation and further technology driven process improvements. Threats: - Increasing competition from new entrants in the market. - Fluctuations in demand for our products due to changes in consumer preferences. - Economic downturns that can affect consumer spending on our products.

Principal risks

Governance and Regulation: - The company ensures it is compliant with all legislative requirements as a minimum standard for its operations. Principal Risks: Financial Risks: - Sandmaster considers the financial risk to be minimal given the company's strong trading history and relationships in the industry. Regular review of the company's liquid resources takes place. The principal risks in the area continue to be the level of credit extended to customers and exposure to exchange rate fluctuations and the possible adverse effect on the cost of raw materials. Competitor Risk: - The company, like all manufacturers, faces the risk of competitors entering the market, potentially gaining an edge through lower energy and labour costs; however, the company aims to compete on quality and strong customer relationships. Economic/Political Risk: - Certain political decisions have been made that have automatically put pressure on all businesses in the UK and ours is no different. We continue to monitor these decisions and look to mitigate their impact where possible. Energy Costs: - The continued increase in energy costs has created a risk to the profitability of the business, to mitigate this we entered a fixed-price, minimum supply energy contract. We are also investigating the development of our premises to incorporate solar technology to further reduce our energy requirements.

Key performance indicators

KPIs continue to be used to monitor the business. All aspects are subject to performance measurement, and we are constantly striving to improve operating performances and reduce operating costs to continue to provide competitive products. The key indicators remain as revenue, profitability, cash generation, debtor days and stock days. Revenue has increased by 32.7% from £8,727,545 in 2023 to £11,586,924 in 2024 with gross margin increasing from £2,452,847 (28.1%) in 2023 to £3,068,560 (26.5%)in 2024. Stock holding days have reduced from 153 in 2023 to 107 on 2024 and debtor days have reduced from 51 days in 2023 to 45 days in 2024.

Business plan

- Expand our presence in emerging markets, strengthen existing relationships, and build new ones to broaden the customer and supplier base. - Embrace new technologies to improve our production efficiency and product quality. - Develop and market eco-friendly and sustainable products to cater to the growing demand for such products. - Monitor and maintain customer satisfaction. - Focus on continuing operations whilst controlling costs.

Going concern

The directors have prepared and continually review the company's forecasts and projections and has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors believe that there is no reason to believe it is not appropriate for the company to continue to adopt the going concern basis in preparing its financial statements.

Conclusion

In conclusion, the current market situation presents both challenges and opportunities for our organisation. Our aim is to grow the business by moving into new markets whilst taking advantage of the new technologies we have been actively developing. With the help of the relationships built with our suppliers and customers, we see a bright future for the company.

This report was approved by the board of directors on 28 August 2025 and signed on behalf of the board by:

Mr M J Crone	Mr S N Gill
Director	Director

Registered office:

Airfield Industrial Estate

Hixon

Staffordshire

ST18 0PF

Sandmaster (UK) Holdings Limited

Directors' Report

Year ended 31 December 2024

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

Principal activities

The principal activity of the company during the year was the manufacture of abrasive products.

Directors

The directors who served the company during the year were as follows:

Mr M J Crone	(Appointed 23 May 2024)
Mr S N Gill	(Appointed 23 May 2024)
Mr R J Edge	(Resigned 23 May 2024)
Mrs J Healey	(Resigned 23 May 2024)

Dividends

Particulars of recommended dividends are detailed in note 11 of the financial statements.

Disclosure of information in the strategic report

The company has chosen in accordance with Section 414C(11)of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out in the group's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and reports) Regulations 2008.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, directors' report 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 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 judgments 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. Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This report was approved by the board of directors on 28 August 2025 and signed on behalf of the board by:

Mr M J Crone	Mr S N Gill
Director	Director

Registered office:

Airfield Industrial Estate

Hixon

Staffordshire

ST18 0PF

Sandmaster (UK) Holdings Limited

Independent Auditor's Report to the Members of Sandmaster (UK) Holdings Limited

Year ended 31 December 2024

Opinion

We have audited the financial statements of Sandmaster (UK) Holdings Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and the related notes, 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 FRS 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; - 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 auditor's 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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report 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 directors' report. We have nothing to report in respect of the following matters in relation to which 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 directors' responsibilities statement, 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 is 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.

Auditor's 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 an auditor’s report 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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: - We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of any acts by the company that were not in line with the applicable laws and regulations, including fraud. Additionally, we gained an understanding of management's procedures relating to detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud. - We made enquiries of management, being those charged with governance, and reviewed correspondence with the company's solicitors around actual and potential litigation and claims. - We made enquiry of staff in compliance functions to identify any instances of non-compliance with laws and regulations. - We reviewed the financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; - We performed audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. - We performed audit work over the risk of fraud in revenue recognition including substantive testing and analytical procedures, over the recording of revenue and testing of year end cut off. 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 As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Sandra Kay Lindley

(Senior Statutory Auditor)

For and on behalf of

Lindley & Co

Chartered Certified Accountants & statutory auditor

Suite 4 Europa House

Europa Way

Britannia Enterprise Park

Lichfield

Staffordshire

WS14 9TZ

28 August 2025

Sandmaster (UK) Holdings Limited

Statement of Income and Retained Earnings

Year ended 31 December 2024

		2024	2023
Note		£	£
Turnover	4	11,586,924	8,727,545

Cost of sales	8,518,364	6,274,698
	-------------	------------
Gross profit	3,068,560	2,452,847

Distribution costs		190,508	137,237
Administrative expenses		2,275,349	1,861,231
		------------	------------
Operating profit	5	602,703	454,379

Other interest receivable and similar income	9	35,513	46,503
		------------	------------
Profit before taxation		638,216	500,882

Tax on profit	10	175,431	29,801
		---------	---------
Profit for the financial year and total comprehensive income		462,785	471,081
		---------	---------

Dividends paid and payable	11	( 3,275,000)	( 58,161)

Retained earnings at the start of the year	4,620,432	4,207,512
	------------	------------
Retained earnings at the end of the year	1,808,217	4,620,432
	------------	------------

All the activities of the company are from continuing operations.

Sandmaster (UK) Holdings Limited

Statement of Financial Position

31 December 2024

	2024	2023
Note	£	£

Fixed assets

Tangible assets	12	400,288	376,629

Current assets

Stocks	14	1,525,738	1,511,498
Debtors	15	1,884,896	1,493,824
Cash at bank and in hand		98,781	3,232,338
		------------	------------
		3,509,415	6,237,660

Creditors: amounts falling due within one year	17	1,918,724	1,802,750
		------------	------------
Net current assets		1,590,691	4,434,910
		------------	------------
Total assets less current liabilities		1,990,979	4,811,539

Provisions	18	82,762	91,107
		------------	------------
Net assets		1,908,217	4,720,432
		------------	------------

Capital and reserves

Called up share capital	21	100,000	100,000
Profit and loss account		1,808,217	4,620,432
		------------	------------
Shareholders funds		1,908,217	4,720,432
		------------	------------

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.

These financial statements were approved by the board of directors and authorised for issue on 28 August 2025 , and are signed on behalf of the board by:

Mr M J Crone	Mr S N Gill
Director	Director

Company registration number: 06404070

Sandmaster (UK) Holdings Limited

Statement of Cash Flows

Year ended 31 December 2024

	2024	2023
Note	£	£

Cash flows from operating activities

Profit for the financial year	462,785	471,081

Adjustments for:
Depreciation of tangible assets	85,298	79,732
Impairment of tangible assets	55,910	–
Other interest receivable and similar income	( 35,513)	( 46,503)
Gains on disposal of tangible assets	–	( 10,653)
Tax on profit	175,431	29,801
Accrued expenses	–	49,480

Changes in:
Stocks	( 14,240)	664,136
Trade and other debtors	( 391,072)	( 378,661)
Trade and other creditors	190,864	731,290
	---------	------------
Cash generated from operations	529,463	1,589,703

Interest received	35,513	46,503
Tax paid	( 163,898)	( 160,896)
	---------	------------
Net cash from operating activities	401,078	1,475,310
	---------	------------

Cash flows from investing activities

Purchase of tangible assets	( 164,867)	( 89,740)
Proceeds from sale of tangible assets	–	48,473
	---------	------------
Net cash used in investing activities	( 164,867)	( 41,267)
	---------	------------

Cash flows from financing activities

Proceeds from borrowings	–	22,493
Dividends paid	( 3,275,000)	( 58,161)
	------------	------------
Net cash used in financing activities	( 3,275,000)	( 35,668)
	------------	------------

Net (decrease)/increase in cash and cash equivalents		( 3,038,789)	1,398,375
Cash and cash equivalents at beginning of year		3,137,570	1,739,195
		------------	------------
Cash and cash equivalents at end of year	16	98,781	3,137,570
		------------	------------

Sandmaster (UK) Holdings Limited

Notes to the Financial Statements

Year ended 31 December 2024

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Airfield Industrial Estate, Hixon, Staffordshire, ST18 0PF.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Significant judgements There are no significant judgements (apart from those involving estimations) made by management in the process of applying the entity's accounting policies and having a significant effect on the amounts recognised in the financial statements. Key sources of estimation uncertainty Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. There are no key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Foreign currencies

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Long leasehold property	-	10% straight line
Plant and machinery	-	10% straight line
Fixtures and fittings	-	20% straight line
Motor vehicles	-	25% straight line

The Director's have changed the depreciation policy following a review of estimated lives and residual value of fixed assets. Depreciation of £90,011 would have been included in the financial statements on the previous bases.

Investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided.

4. Turnover

Turnover arises from:

	2024	2023
	£	£
Sale of goods	11,586,924	8,727,545
	-------------	------------

The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:

	2024	2023
	£	£
United Kingdom	1,391,626	1,129,998
Overseas	10,195,298	7,597,547
	-------------	------------
	11,586,924	8,727,545
	-------------	------------

5. Operating profit

Operating profit or loss is stated after charging/crediting:

	2024	2023
	£	£
Depreciation of tangible assets	85,298	79,732

Impairment of tangible assets recognised in:

	Cost of sales	45,795	–
	Administrative expenses	10,115	–
Gains on disposal of tangible assets		–	( 10,653)
Impairment of trade debtors		(27,930)	(31,425)
Operating lease rentals		28,991	–
Foreign exchange differences		26,149	4,468
Operating lease rentals -land and buildings		547,933	642,324
		---------	---------

6. Auditor's remuneration

	2024	2023
	£	£
Fees payable for the audit of the financial statements	12,000	12,000
	--------	--------

7. Staff costs

The average number of persons employed by the company during the year, including the directors, amounted to:

	2024	2023
	No.	No.
Production staff	94	77
Administrative staff	10	10
	----	----
	104	87
	----	----

The aggregate payroll costs incurred during the year, relating to the above, were:

	2024	2023
	£	£
Wages and salaries	2,814,232	2,084,451
Social security costs	254,484	182,065
Other pension costs	78,855	74,090
	------------	------------
	3,147,571	2,340,606
	------------	------------

8. Directors' remuneration

The directors' aggregate remuneration in respect of qualifying services was:

	2024	2023
	£	£
Remuneration	261,616	285,696
Company contributions to defined contribution pension plans	6,818	34,976
	---------	---------
	268,434	320,672
	---------	---------

The number of directors who accrued benefits under company pension plans was as follows:

	2024	2023
	No.	No.
Defined contribution plans	3	2
	----	----

Remuneration of the highest paid director in respect of qualifying services:

	2024	2023
	£	£
Aggregate remuneration	127,250	240,000
Company contributions to defined contribution pension plans	3,818	17,000
	---------	---------
	131,068	257,000
	---------	---------

9. Other interest receivable and similar income

	2024	2023
	£	£
Interest on cash and cash equivalents	24,850	34,911
Corporation tax repayment interest	10,663	11,592
	--------	--------
	35,513	46,503
	--------	--------

10. Tax on profit

Major components of tax expense

	2024	2023
	£	£

Current tax:

UK current tax expense	176,202	38,504
Adjustments in respect of prior periods	7,574	( 3,158)
	---------	--------
Total current tax	183,776	35,346
	---------	--------

Deferred tax:

Origination and reversal of timing differences	( 8,345)	( 5,545)
	---------	--------
Tax on profit	175,431	29,801
	---------	--------

Reconciliation of tax expense

The tax assessed on the profit on ordinary activities for the year is higher than (2023: lower than) the standard rate of corporation tax in the UK of 25 % (2023: 23.50 %).

	2024	2023
	£	£
Profit on ordinary activities before taxation	638,216	500,882
	---------	---------
Profit on ordinary activities by rate of tax	159,554	117,707
Adjustment to tax charge in respect of prior periods	7,574	(3,157)
Effect of expenses not deductible for tax purposes	4,500	–
Effect of capital allowances and depreciation	3,803	717
Utilisation of tax losses	–	( 41,337)
Rounding on tax charge	–	346
Research and development	–	(44,475)
	---------	---------
Tax on profit	175,431	29,801
	---------	---------

11. Dividends

	2024	2023
	£	£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )	3,275,000	58,161
	------------	--------

12. Tangible assets

	Long leasehold property	Plant and machinery	Fixtures and fittings	Motor vehicles	Total
	£	£	£	£	£
Cost
At 1 January 2024	67,384	682,587	60,967	4,795	815,733
Additions	72,251	76,552	16,064	–	164,867
	---------	---------	--------	-------	---------
At 31 December 2024	139,635	759,139	77,031	4,795	980,600
	---------	---------	--------	-------	---------
Depreciation
At 1 January 2024	49,987	348,324	37,515	3,278	439,104
Charge for the year	13,298	63,988	8,012	–	85,298
Impairment losses	–	45,795	8,598	1,517	55,910
	---------	---------	--------	-------	---------
At 31 December 2024	63,285	458,107	54,125	4,795	580,312
	---------	---------	--------	-------	---------
Carrying amount
At 31 December 2024	76,350	301,032	22,906	–	400,288
	---------	---------	--------	-------	---------
At 31 December 2023	17,397	334,263	23,452	1,517	376,629
	---------	---------	--------	-------	---------

13. Investments

	Other investments other than loans
	£
Cost
At 1 January 2024 and 31 December 2024	71,000
	--------
Impairment
At 1 January 2024 and 31 December 2024	71,000
	--------

Carrying amount
At 31 December 2024	–
	--------
At 31 December 2023	–
	--------

14. Stocks

	2024	2023
	£	£
Raw materials and consumables	807,728	737,377
Work in progress	224,408	296,258
Finished goods and goods for resale	493,602	477,863
	------------	------------
	1,525,738	1,511,498
	------------	------------

15. Debtors

	2024	2023
	£	£
Trade debtors	1,441,283	1,210,670
Amounts owed by group undertakings	60,006	–
Prepayments and accrued income	316,361	106,972
Other debtors	67,246	176,182
	------------	------------
	1,884,896	1,493,824
	------------	------------

Included in debtors are trade debtors of £1,106,140 (2023 £1,146,808) subject to a factoring agreement. The corresponding amount due to the factors of £560,412 (2023 £730,279) is included in creditors due within one year.

16. Cash and cash equivalents

Cash and cash equivalents comprise the following:

	2024	2023
	£	£
Cash at bank and in hand	98,781	3,232,338
Bank overdrafts	–	( 94,768)
	--------	------------
	98,781	3,137,570
	--------	------------

17. Creditors: amounts falling due within one year

	2024	2023
	£	£
Bank loans and overdrafts	–	94,768
Trade creditors	1,094,079	746,397
Accruals and deferred income	100,781	100,781
Corporation tax	19,878	–
Social security and other taxes	55,488	56,698
Director loan accounts	22,493	22,493
Other creditors	626,005	781,613
	------------	------------
	1,918,724	1,802,750
	------------	------------

The amount due to the factoring company of £560,412 (2023 £730,279) included in other creditors is secured by a fixed and floating charge over the assets of the company in favour of RBS Invoice Finance Limited.

18. Provisions

	Deferred tax (note 19)
	£
At 1 January 2024	91,107
Charge against provision	( 8,345)
	--------
At 31 December 2024	82,762
	--------

19. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	2024	2023
	£	£
Included in provisions (note 18)	82,762	91,107
	--------	--------

The deferred tax account consists of the tax effect of timing differences in respect of:

	2024	2023
	£	£
Accelerated capital allowances	82,762	91,107
	--------	--------

20. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 72,037 (2023: £ 39,114 ).

21. Called up share capital

Issued, called up and fully paid

	2024		2023
	No.	£	No.	£
Ordinary A shares of £ 1 each	30,000	30,000	30,000	30,000
Ordinary B shares of £ 1 each	70,000	70,000	70,000	70,000
	---------	---------	---------	---------
	100,000	100,000	100,000	100,000
	---------	---------	---------	---------

22. Analysis of changes in net debt

	At 1 Jan 2024	Cash flows	At 31 Dec 2024
	£	£	£
Cash at bank and in hand	3,232,338	(3,133,557)	98,781
Bank overdrafts	(94,768)	94,768	–
Debt due within one year	(22,493)	–	(22,493)
	------------	------------	--------
	3,115,077	( 3,038,789)	76,288
	------------	------------	--------

Sandmaster (UK) Holdings Limited

Notes to the Financial Statements (continued)

Year ended 31 December 2024

23. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	2024	2023
	£	£
Not later than 1 year	18,581	–
Later than 1 year and not later than 5 years	111,800	–
Later than 5 years	5,950,000	–
	------------	----
	5,819,619	–
	------------	----

24. Directors' advances, credits and guarantees

During the year the directors entered into the following advances and credits with the company:

	2024
	Balance brought forward	Advances/ (credits) to the directors	Balance outstanding
	£	£	£
Mr R J Edge	( 22,493)	–	( 22,493)
	--------	----	--------

	2023
	Balance brought forward	Advances/ (credits) to the directors	Balance outstanding
	£	£	£
Mr R J Edge	–	( 22,493)	( 22,493)
	----	--------	--------

25. Related party transactions

Mr RJ Edge has a controlling interest in Envirostik Holdings (UK) Limited. During the year Sandmaster (UK) Holdings Limited made recharges of overheads totalling £58,722 to this company. At the balance sheet date there was £32,863 due to Envirostik Holdings (UK) Limited.

26. Controlling party

The company is controlled by Arena Maestro Limited who acquired 100% of the share capital from Mr RJ Edge on 23 May 2024.The registered office and principal place of business of Arena Maestro Limited are Unit 4a-4k, Airfield Industrial Estate, Hixon, Stafford, ST18 0PF.