REGISTERED NUMBER: 05191512 (England and Wales)

Unaudited Financial Statements for the Year Ended 30 December 2024

for

Gen 2 Carbon Limited

Page

Company Information

1

Chartered Accountants' Report

2

Balance Sheet

3

Notes to the Financial Statements

5

DIRECTORS:

F J C Barnes

M B Hanif

REGISTERED OFFICE:

Cannon Business Park

Gough Road

Coseley

West Midlands

WV14 8XR

REGISTERED NUMBER:

05191512 (England and Wales)

ACCOUNTANTS:

Wilkes Tranter & Co Limited

Brook House

Moss Grove

Kingswinford

West Midlands

DY6 9HS

The following reproduces the text of the report prepared for the directors in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Balance Sheet. Readers are cautioned that the Income Statement and certain other primary statements and the Directors' Report are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Gen 2 Carbon Limited for the year ended 30 December 2024 which comprise the Profit and Loss account, Balance Sheet and the related notes from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

This report is made solely to the Board of Directors of Gen 2 Carbon Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Gen 2 Carbon Limited and state those matters that we have agreed to state to the Board of Directors of Gen 2 Carbon Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Gen 2 Carbon Limited and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Gen 2 Carbon Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of Gen 2 Carbon Limited. You consider that Gen 2 Carbon Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Gen 2 Carbon Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Wilkes Tranter & Co Limited

Brook House

Moss Grove

Kingswinford

West Midlands

DY6 9HS

22 September 2025

FIXED ASSETS

Intangible assets

4

4,960

7,548

Tangible assets

5

440,424

639,924

445,384

647,472

CURRENT ASSETS

Stocks

782,477

545,587

Debtors

6

243,344

137,276

Cash at bank and in hand

28,919

19,457

1,054,740

702,320

CREDITORS

Amounts falling due within one year

7

(888,343

)

(556,282

)

NET CURRENT ASSETS

166,397

146,038

TOTAL ASSETS LESS CURRENT LIABILITIES

611,781

793,510

CREDITORS

Amounts falling due after more than one year

8

2,930,007

1,859,967

CAPITAL AND RESERVES

Called up share capital

1,417

1,417

Retained earnings

(2,319,643

)

(1,067,874

)

(2,318,226

)

(1,066,457

)

611,781

793,510

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 December 2024.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 December 2024 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 22 September 2025 and were signed on its behalf by:

M B Hanif - Director

1.	STATUTORY INFORMATION

Gen 2 Carbon 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.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

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

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of five years.

Tangible fixed assets

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

Plant and machinery

-

20% on cost and 10% on cost

Fixtures and fittings

-

20% on cost

Stocks

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

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

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss account, 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

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.

Going concern

At 30 December 2024 there was a deficiency of assets of £2,318,226. The company is dependant upon the continued financial support of the shareholders of the parent company. It is understood that this support will continue. On this basis the directors consider it appropriate to prepare financial statements on a going concern basis. These financial statements do not include any adjustments which would arise if the accounts had not been prepared on a going concern basis.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 13 (2023 - 17 ) .

4.	INTANGIBLE FIXED ASSETS

Computer

software

£

COST

At 31 December 2023

and 30 December 2024

12,940

AMORTISATION

At 31 December 2023

5,392

Amortisation for year

2,588

At 30 December 2024

7,980

NET BOOK VALUE

At 30 December 2024

4,960

At 30 December 2023

7,548

5.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

property

machinery

fittings

Totals

£

£

£

£

COST

At 31 December 2023

452,368

2,287,399

291,125

3,030,892

Disposals

-

(137,217

)

-

(137,217

)

At 30 December 2024

452,368

2,150,182

291,125

2,893,675

DEPRECIATION

At 31 December 2023

452,368

1,676,036

262,564

2,390,968

Charge for year

-

153,152

15,821

168,973

Eliminated on disposal

-

(106,690

)

-

(106,690

)

At 30 December 2024

452,368

1,722,498

278,385

2,453,251

NET BOOK VALUE

At 30 December 2024

-

427,684

12,740

440,424

At 30 December 2023

-

611,363

28,561

639,924

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade debtors

51,105

598

Other debtors

192,239

136,678

243,344

137,276

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Hire purchase contracts

26,497

26,497

Trade creditors

295,188

220,545

Other creditors

566,658

309,240

888,343

556,282

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2024

2023

£

£

Hire purchase contracts

61,827

88,324

Amounts owed to group undertakings

406,967

415,297

Other creditors

2,461,213

1,356,346

2,930,007

1,859,967

9.	ULTIMATE CONTROLLING PARTY

The company is a 100% wholly owned subsidiary of Gen 2 Composites Ltd which is registered at Cannon Business Park, Gough Road, Coseley, Dudley, WV14 8XR.