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

Based in Ammanford of South Wales, the Group specialises in manufacturing GRP industrial housing and composite construction.

The directors are pleased to report a strong commercial performance for the year, with the Group achieving record turnover of over £19.8 million. Profit margins also improved significantly to 62.72%, compared to 55.0% in the prior year. This positive result reflects careful cost control, operational discipline, and effective management of staffing and overheads, supporting the Group’s ability to scale efficiently and sustainably.

The Group operates in a dynamic and increasingly sustainability-driven market. Demand continues to grow for durable, low-maintenance, and environmentally responsible materials—particularly in infrastructure, utilities, and construction. Within this context, our GRP (Glass Reinforced Plastic) products remain well-positioned, offering a compelling alternative to traditional building materials due to their long design life (typically exceeding 30 years) and recyclability at end-of-life.

Throughout the year, the Group has focused on strengthening internal systems and processes to enhance service delivery and operational resilience. Emphasis has been placed on driving customer value through proactive engagement and high service standards, while maintaining close collaboration with key suppliers to secure material availability and pricing stability.

Looking ahead, the Group’s strategic priorities include deepening customer and supplier relationships, investing further in workforce development, and continuing product innovation in line with sustainable construction trends. The directors believe this approach will allow the Company to consolidate its market position, respond effectively to external challenges, and capitalise on new growth opportunities.

In the prior year, the Group acquired 100% of the shareholding of The Plough at Rhosmaen Limited. It was a decision of the owners and directors to diversify investments held by the holding company. These financial statements include the results of incorporating the new subsidiary a full 12 month period. Introducing this new subsidiary to the Group has resulted in a contribution to the profit before tax of £173k.

The directors remain confident in the Group’s strategic direction but are mindful of the wider operating environment. The Group faces a range of risks, the most significant of which are considered below and actively monitored through its risk management framework:

Supply chain volatility

While mitigated through multi-source procurement, raw material lead times and prices—especially for resins and structural steel—remain a concern.

Utility sector budgeting cycles

Variability in public and private utility investment programmes could impact the order pipeline.

Regulatory risk

Changes in building codes or product certification requirements may necessitate design or process changes. The company has risk controls and review procedures in place, including quarterly board reviews, and supplier diversification strategies.

Liquidity risk

The group produces detailed management accounts and forecasts, which enables the directors to monitor the cash position and to ensure that there is sufficient liquidity and cash flow to minimise the risk of the Group being unable to pay its debts as they fall due.

People

Our workforce is the backbone of the business. Headcount increased in both the production and design teams to meet rising demand. The company maintains a strong focus on health and safety, training, and well-being. Apprenticeship and upskilling initiatives have been successful, and employee retention remains high, driven by a positive work culture and progression opportunities.

Credit risk

The group operates a number of policies and controls to minimise credit risk. All customers are subject to a detailed review prior to any terms being agreed, the Group will only conduct business with customers deemed to be credit worthy.

On behalf of the board

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

The primary activity of the Group continued to be that of a specialist manufacturer of prebuilt Glass Reinforced Plastic (GRP) composite buildings, serving all major utility sectors. Our products are engineered to meet rigorous industry standards and are used in a variety of infrastructure projects across the UK, providing turnkey enclosure solutions for gas, water, electricity, nuclear, rail and the renewables sector. Additional activities within the Group continued to be the operation of a hotel and restaurant.

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

In the reporting period, Quinshield's total UK energy consumption was approximately 658,615 kWh, which includes electricity, gas and fuel for company vehicles.

Although not required to disclose under the Streamlined Energy and Carbon Reporting (SECR) framework due to our medium-sized status, the Group recognises the importance of transparency around environmental impact and is committed to minimising its carbon footprint.

We continue to monitor energy usage and are exploring initiatives aimed at improving energy efficiency across our operations, including:

-Upgraded lighting controls; Installation of Motion Sensor LED Systems.

-Improved Insulation: Rest and break areas retrofitted with high efficiency insulation.

-Earlier equipment shut down: Daily Power Off time from 15.30 to 15.05.

-Grey Water Harvesting: Over 300m3 recycled annually, lowering demand on water supply.

-Reduced travel: Transition to E-Marketing and video conferencing for sales and training.

-Fleet efficiency: Maintenance of vans and review of replacement policies to include lower emission models.

-Employee Engagement: Internal campaigns on reducing energy waste and promoting sustainable habits.

-Compressor, L.E.V. and HVAC optimisation. Service LEV and HVAC regularly.

-Telematics in fleet vehicles.

The directors are responsible for preparing the Annual 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 group and company, and of the profit or loss of the group 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;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

The financial statements have been prepared on a going concern basis which assumes the Group will continue in operational existence for the foreseeable future. In making their assessment the directors have reviewed the balance sheet, the likely future cash flows of the business and have considered the facilities that are in place at the date of signing the report.

The Group meets its day to day working capital requirements from its cash reserves. At the date of approval of the financial statements, sales to all key markets have continued to meet budgeted levels. With no indication that the current time this position will change, the Group's forecasts and projections show that the Group will be able to operate within available reserves.

At the time of approving the financial statements, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence foe the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

The auditors Redwood Wales Limited will be proposed fo re-appointment at the forthcoming Annual General Meeting.

We have audited the financial statements of Cronfa Cyf (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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 group's and the parent company's affairs as at 31 December 2024 and of the group's 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent 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 contained within the annual report. 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. 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 course of 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 our 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.

In the light of the knowledge and understanding of the group and the parent company and their 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent company 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.

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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.

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.

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

We obtain an understanding of the legal and regulatory frameworks that the company operates in, focusing on those laws and regulations that had a direct effect on the Financial Statements or that had a fundamental effect on operations of the company. The key laws and regulations we consider in this context include UK Companies Act and relevant tax legislation.

Audit procedures performed by the engagement team to respond to the risk of irregularities and non-compliance with laws and regulations, including fraud, include the following:

• discussions with management to enquire of any known instances of non-compliance with laws and regulations, including fraud;

• discussions with management in respect of any actual or potential litigation claims;

• performing analytical procedure to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

• testing the appropriateness of journal entries and other adjustments to address the risk of fraud through management override of controls;

• review of the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations; and

• evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

There are inherent limitations in the audit procedures which means we are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. The risk of not detecting material misstatement due to fraud is higher than the risk of non detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forger or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 ndertaken 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.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £302,368 (2023 - £5,116,938 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

Cronfa Cyf (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is C/o Quinshield, Capel Hendre Industrial Estate, Ammanford, UK, SA18 3SJ.

The group consists of Cronfa Cyf and all of its subsidiaries.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS102, being parent of a group which prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

• Section 4 'Statement of Financial Position' - Reconciliation of the opening and closing number shares;

• Section 7 'Statement of Cash Flows' - Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 'Basic Financial Instruments' and section 12 'Other Financial Instrument Issues' - Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument'; basis of determining fair values ; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 33 'Related Party Disclosures'

The consolidated group financial statements consist of the financial statements of the parent company Cronfa Cyf together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Where necessary. adjustments are made to the financial statements of the subsidiaries to bring the accounting policies used into line with those used by other members of the Group.

The financial statements have been prepared on a going concern basis which assumes that the Group will continue in operational existence for the foreseeable future. In making their assessment the directors have reviewed the balance sheet, the likely future cash flows of the business and have considered the facilities that are in place at the date of signing the report.

The Group meets its day to day working capital requirements from its cash reserves at the date of signing, sales to all key markets have continued to meet budgeted levels. With no indication that at the current time this position will change, the Group's forecasts and projections show that the Group will be able to operate within available reserves.

Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

The turnover shown in the profit and loss account represents amounts invoiced during the year for manufacturing and the maintenance of GRP structures, exclusive of Value Added Tax.

Turnover in relation to food and drink comprises the fair value of the consideration received or receivable for the sale of food, drink and provision of hotel rooms and services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

Revenue from sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be in respect of the transaction can be measured reliably.

In respect of long-term contracts, turnover represents the value of work done in the year, including estimates of amounts not invoiced. Turnover in respect of long-term contracts is recognised by reference to stage of completion.

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

The company operates a defined contribution pension scheme for certain directors and employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the profit and loss account.

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

Product development

Product development expenditure is written off in the year in which it is incurred.

Hire purchase and leasing commitments

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

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The annual depreciation charges for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually.

They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See above for useful economic lives for each class of assets.

During the year at the balance sheet date the group tasked in house experienced personnel with quantifying the amounts recoverable on each contact in progress. Cost of work done to date including materials, subcontractors and staff is taking into consideration before arriving at a valuation by reference to the stage of completion. The group include provisions in their valuation for unforeseen costs based on the risk of likelihood of them occuring.

The average monthly number of persons (including directors) employed by the group and company during the year was:

Their aggregate remuneration comprised:

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

Investment property consists of freehold land and buildings which are held at cost. Acquisition of these properties are recent and the directors do not consider there is a material difference in market value.

Details of the company's subsidiaries at 31 December 2024 are as follows:

Included in other creditors are amounts of £136,212 (2024: £156,392) which relates to monies collected for deposits and hospitality vouchers.

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

The ultimate controlling party during the current and previous year was director Dr D J Jenkins.

During the year the group paid rent of £800,000 (2023: £800,000) for use of its manufacturing premises to an entity controlled by Mr D W Jenkins and Mr A D Jenkins, directors.

During the year the company paid £43,257 (2023:£39,325) for consultancy services from a related business.