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

Polyseam has continued to expand in passive fire protection markets. The key brands to Polyseam are Protecta, Graft and several customer own brands. As the business expands new roles have been created and changes of personnel to cope with the business demands have been inevitable through retirements, expansion, automation and changes in production activities.

New personnel have been welcomed to Polyseam with the main one being the position of Head of Engineering.

The company continues to operate and strengthen the two shifts implemented to deliver on lead times and volumes.

To meet the demand for certified passive fire protection products, research and development, design and fire testing divisions are being strengthened with new appointments. Investment continues for new product lines and markets. Examples are the insulation and coatings markets.

Our Sales and Service Divisions continue to offer a service appreciated by our customers and demonstrated by the continued increase in volumes and turnover.

Our customers are aided by a knowledgeable and professional Technical Division. Guidance and support for installations is often sought from Technical staff.

The Division has also seen an increase in the number of enquiries and training sessions to improve contractor and customer knowledge and the experience of using Protecta products.

Internal Technical Training on Passive Fire Protection given to Polyseam staff to improve overall knowledge of fire protection.

Certificates issued so training is captured and entered into Sirrom. Further training to follow in more detail for those interested, potentially more specific product focused. Suggested to run future sessions and plan three or four dates through the year. Weekly refresher training every other Tuesday.

New machinery and equipment investment included commissioning of the new Board Line (due February 2025).

Plans are being prepared for automation of the EX Mortar line as demand continues to increase. We are currently in the costing process of adding silos which will decrease the amount of waste produced and bag handling.

Machinery and equipment investment included a new cartridge line and mixer for sealants. Plans are being prepared for automation of the EX Mortar line as demand continues to increase. More automation is required and a reduction in labour intensive methods in the production.

With increased raw material use and demand, the storage and delivery of these materials in the production processes are under review.

Key operations for product manufacture in production are: mixing/blending, filling, spraying, extruding, assembly and drying.

Internal operations meetings continue supported by weekly management meetings to implement the business strategy, to remove bottlenecks and meet customer demand.

Purchasing spend remains under full control of Finance with the aim to control/monitor purchase spend in line with sales/production requirements.

Effective purchase and stock management in conjunction with the Logistics/Warehouse Manager is necessary to accommodate stocks while production volumes increase. To maintain continuity new suppliers and products are sourced regularly and evaluated.

New strategies to reduce our impact on the environment included: reducing waste and producing EPDs to demonstrate the environmental impact to customers, solar panels, automated board spraying and drying, longer production runs to avoid unnecessary clean downs.

New meetings to facilitate health and safety, training, environmental and project management are aiding the business expansion and although only recently implemented will have the desired effects of a controlled implementation of new ideas and efficiencies in the current growth being experienced.

The new EFG Group meet monthly to keep environmental focus.

A new PSG group and FSG group to focus on health and safety and fire safety respectively. Paul Horton is sharing safety group and fire safety group minutes with the management team.

New SMART objectives were created in 2024. Also there is a drive to create an environmental and CSR strategy and mission statement.

As the company is a large importer and especially from China we continue to review uncertainty with regard to tariffs and increased costs that would be applied. Supply chains were checked to ensure that continuity of materials was maintained from suppliers. New suppliers continually sought to provide an alternative. Attacks targeting ships in the Red Sea have disrupted commercial shipping operations since December 2023 and continue to delay schedules adding many weeks to our deliveries.

The actions we took included:

Appointing hauliers to manage our imports at customs borders

Commodity codes for our products were established when available

New suppliers sought

REACH UK requirements will be similar if not the same to ECHA guidelines which we already follow

CE marking and approvals for our exported construction products have been registered with a recognised European agent. We await feedback on UKCA

As members of BASA / FEICA we are updated and kept informed to enable a smooth transition

Sales turnover for 2024 increased to £24.2m (2023 £22.9m). Polyseam continue to invest in new machinery to be more efficient and reduce lead times on our products. More staff training is being invested in to ensure our workforce fully understand what is expected of them.

Operations

All under one roof but is split into five sections. Production covers three of these sections. FLTs, pallet wrappers, auto filling lines and mixing vessels all included. All machines are maintained by the engineering department.

Availability of machines and vessels is good. Machine running capability is good. Investment in new lines/machinery is good. New mixer and new auto filling line now on site. New lines are up and running – further upgrades in regards to efficiencies are imminent.

Quality Control (QC)

QC have concentrated on being more visible on the shop floor, introducing a daily walk round with a quality check list. Exercise not to be seen fault finding, blaming or a finger pointing exercise with more opportunities to improve the way we work as a team and support production, correct minor errors and improve communication. Improvement in RFT shared with CEO at operations meeting.

Engineering

Drawings/design/costings for a second automated spray line. Drawings/design/costings for a new mortar line. Concept for automation of RSB production. Installation of new cartridge filling/packing machine. Shop floor production lines new layout. New mixer installed. Second bagging machine installed.

Purchasing

Implemented approved supplier list

Implemented approved PPE list on Sharepoint

Supplier audit schedule introduced for every quarter

Commenced measuring office paper printing

Reputable pallet recycling company in place

We now segregate the following waste: -

Batteries.

WEEE (Waste Electrical and Electronic Equipment recycling).

Metal.

Paint waste to Paint 360 (9 Tonne in 2024).

Archived paper.

On behalf of the board

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

The principal activity of the company continued to be that of manufacturing and supplying sealants.

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

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

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

The company continues to undertake ongoing research and development activities to enhance and expand its range of products. Its current activities include developing coatings for steel and cladding.

Investment in fire testing, certifications, research and development and new machinery under the guidance of the CEO continues.

In accordance with the company's articles, a resolution proposing that Robson Laidler Accountants Limited be reappointed as auditor of the company will be put at a General Meeting.

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 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; and

• 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.

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 company’s auditor 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 company’s auditor is aware of that information.

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

We have audited the financial statements of Polyseam Limited (the 'company') for the year ended 31 December 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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 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 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 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 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.

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.

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.

Based on our understanding of the company, we identified that there were no principal risks of non-compliance with laws and regulations central to the company's operations as it does not have to report to a regulatory body and, although its products must comply with certain safety regulations and product standards, there is no supervisory body which monitors its operations. We also considered those laws and regulations that have a direct impact on the financial statements of the company such as the Companies Act 2006 and UK tax legislation.

Audit procedures performed by the engagement team included:

Discussions with UK directors and key management including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;

Evaluation and testing of the operating effectiveness of management's controls designed to prevent and detect irregularities;

Reviewing relevant meeting minutes;

Identifying and testing journal entries based on risk criteria;

Testing transactions entered into outside of the company's normal course of business.

There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it. Also the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment or 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 undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report 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.

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

The notes on pages 14 to 25 form part of these financial statements.

Polyseam Limited is a private company limited by shares incorporated in England and Wales. The registered office is 15 St Andrews Road, Huddersfield, West Yorkshire, England, HD1 6SB.

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 UK sterling which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared under the historical cost convention and in accordance with applicable accounting standards. The principal accounting policies adopted are set out below.

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

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation 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:

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 credited or charged to profit or loss.

At each reporting period end date, the company 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.

Stocks are stated 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 stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.                        

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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 and 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 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.

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.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

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 shorter.

The interest element of those 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.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.                        

Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortized at cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.                    

The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements. If, in the future, such estimates and assumptions, which are based on management's best judgement at the date of the financial statements, deviate from the actual circumstances, the original estimates and judgements will be modified as appropriate in the year in which the circumstances change.

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include:

The estimated useful lives of tangible fixed assets

Stocks held for more than one year are deemed to be obsolete and are provided for in full

Turnover generated from the sale of goods was £24,257,517 (2023 £22,936,394)

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 6 (2023 - 4).

The actual charge/(credit) 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:

Tangible fixed assets includes assets held under finance leases or hire purchase contracts, as follows:

Included in the above is an impairment provision for slow-moving stocks of £15,936 (2023 £43,408).    

The finance leases are secured on the assets being financed.

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

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Amounts contracted for but not provided in the financial statements:

During the year the company entered into the following transactions with related parties:

Advances or credits have been granted by the company to its directors as follows:

Interest of £9,318 (2023 £7,880) has been charged on the loan at the HMRC Official Rate of Interest which was 2.25% for the full year.

Protecta Group AS (incorporated in Norway) is regarded by the directors as being the company's ultimate parent company.